Voluntary liquidation - shares of the minority , Business Law and Ethics

Voluntary liquidation - shares of the minority:

A company in (or about to go into) members' voluntary liquidation may by special resolution authorize the liquidator to sell the business or property for shares (of some other company) to be distributed to members.  But any member who did not vote in favour of the special resolution may in the ensuing seven days deliver to the registered office a notice addressed to the liquidator requiring him either to pay that member the value of his interest in cash or to abandon the proposed sale: CA s.280.

If the company is in a creditors voluntary liquidation a special resolution to approve the sale must be passed and it is also necessary for the sale to be approved by the court or by the committee of inspection: CA s.292.  Moreover a creditor can at any time within a year of the passing of the special resolution (in a members voluntary winding up) render it invalid by obtaining a court order for compulsory liquidation: s.280(5).  It is therefore prudent to dispose of possible objections by creditors before the company enters into the transaction.

Posted Date: 1/15/2013 4:34:20 AM | Location : United States







Related Discussions:- Voluntary liquidation - shares of the minority , Assignment Help, Ask Question on Voluntary liquidation - shares of the minority , Get Answer, Expert's Help, Voluntary liquidation - shares of the minority Discussions

Write discussion on Voluntary liquidation - shares of the minority
Your posts are moderated
Related Questions
Resolutions: A meeting reaches a decision by passing a resolution.  There are two kinds of resolution, ie. (a) an ordinary resolution which is carried by a simple majority

Right to prior repayment: Therefore this was not variation of class rights since the existing preference shareholders had the same number of shares (and votes at a class meeti

Exceptions: The rule in Turquand's case will not apply if: i.The person suing the company is in fact an insider, such as a director of the company: Howard v Patent Ivory

Void Contracts - Law of Contract Whereas  the Infant's Relief Act 1874 of the UK applies to the US as a statute of general application such was in force in the UK on date 12 A

Select an existing business that is dealing with, or has recently dealt with, a negative public relations situation involving business ethics. You may also use your own company. Co

QUESTION 1 Discuss the sources of the Mauritian law QUESTION 2 (a) Tom, Pim and Pam enter into a lease agreement. The agreement has already been signed by Pim and Pam.

QUESTION 1 Explain the meaning of ‘constructive dismissal' with reference to appropriate case law QUESTION 2 (a) What is the meaning of remuneration? (b) What type o

Dishonour by Non-Acceptance The drawee is not prepared to meet the bill, such he will return it for the holder by means of a note to this effect, such the bill is then so said

Proceedings for Compulsory Liquidation: When the petition is presented to the court a copy is delivered to the company in case it objects, and it is advertised so that other

QUESTION Miss Titch Herr, a newly appointed education officer, starts her day at No Nonsense State Secondary School (NNSSS), an institution wholly subsidized from public funds