Winding-up, Business Law and Ethics

Winding-Up:  

(a) A company is dissolved, i.e. ceases to exist, when its name is removed from the register.  It is usually necessary, before it can be dissolved, to liquidate or wind up the company ("liquidation" and "winding up" have the same meaning ); i.e. the assets are realized, the debts are paid, the surplus (if any) is returned to members, and the company is then dissolved.  But the registrar has power, if it appears to him that the company is defunct to strike it off the register summarily without a previous liquidation:  CA s.339.  There is also an obsolete procedure for voluntary winding up under the supervision of the court: CA s.304.     

(b) Liquidation begins with a formal decision to liquidate.  If the members in general meeting resolve to wind up the company that is a voluntary winding up, which may be either a members' or creditors' voluntary winding up depending on the creditors' expectation that the company will or will not be able to pay its debts in full.  Creditors have a decisive part in the  liquidation of an insolvent company since the remaining assets belong to them.

(c) Although voluntary liquidation is simpler, quicker and less expensive, it is possible only if a majority of votes is cast in general meeting on a resolution to liquidate.  A company may, however, be obliged to wind up by a compulsory liquidation ordered by the court on a petition usually presented by a creditor or a member.

(d) Whether liquidation is voluntary or compulsory it is in the hands of the liquidator (or joint liquidators) who take over control of the company from its directors.  Although liquidation may begin in different ways and there are differences of procedure the working method is much the same in every type of liquidation and the same legal problems can arise.

(e) The sequence of topics below is the procedure by which compulsory, members' voluntary and creditors' voluntary liquidation begin.  The legal problems, with which the liquidator may be concerned are considered in the next following session.

Posted Date: 1/15/2013 4:38:06 AM | Location : United States







Related Discussions:- Winding-up, Assignment Help, Ask Question on Winding-up, Get Answer, Expert's Help, Winding-up Discussions

Write discussion on Winding-up
Your posts are moderated
Related Questions
Theoretical foundations of international policy coordination Policy process more from a domestic perspective. If a country is small one can assume away any spillover effects th

CASE LAW:    The aforesaid statutory provisions for the protection of minorities have been supplemented by judicial intervention in a variety of cases which are generally expl

Protection of Hirer - Sales of Goods In the S.7 of the Act makes certain provisions void whether they are contained in such the hire purchase agreement, like e.g.: 1) Any t

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who necessarily takes the initiative in considering the contract

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl

QUESTION 1 (i) What are the principles applicable regarding the unjustified termination of a contract of employment (ii) What would be your views regarding the legal issues

State about the Median Voter Theorem Percentage of vote necessary for a proposal to be adopted, remember Median Voter Theorem, will affect the difficult of adopting a proposal,

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

COMPANY MANAGEMENT: A company, being an artificial person, cannot manage its own affairs. It is therefore not surprising to find that the articles of every registered company

Question 1: (a) Explain what is meant by Subsidiary Legislation and the reasons for using such a Law. (b) Explain the ways in which Subsidiary Legislation is controlled.