Differences members and creditors voluntary wind up, Business Law and Ethics

Assignment Help:

Differences members and creditors voluntary wind up:

main differences between a members' and a creditors' voluntary winding up are that:

(a) in a creditors' voluntary winding up the liquidator, although responsible to members as well as creditors, is selected by the creditors.  In a members' voluntary winding up he is appointed by the members;

(b) in a creditors' voluntary winding up the liquidator must obtain the approval (usually) of the committee of inspection for the exercise of certain statutory powers.  In a members' voluntary winding up he obtains approval from the members in general meeting;

(c) there is a committee of inspection in a creditors' voluntary winding up with up to five members, a majority of whom being appointed by the creditors: s.288(1).  There is no committee in a members' voluntary winding up.

The effect is that the creditors have a decisive influence on the conduct of the liquidation.  This is reasonable since it is assumed (in the absence of a statutory declaration of solvency) that the company is unable to pay its debts in full.  The remaining assets will therefore be realized for the benefit of the creditors and the members get nothing (unless the company proves to be solvent after all).

Meetings are held in the same sequence as in a members' voluntary winding up but the meetings of creditors are called at the same intervals as the meetings of members and for similar purposes.


Related Discussions:- Differences members and creditors voluntary wind up

What do you mean by breach of duty, What do you mean by breach of duty? ...

What do you mean by breach of duty? Breach of duty: It is based onto a “reasonable man” would conclude if there has been any negligence, so. The basis stems through what

Casual vacancies - accounts and audit, CASUAL VACANCIES: By S.159 (6) ...

CASUAL VACANCIES: By S.159 (6) "The directors may fill any casual vacancy in th office of auditor, so further any there such vacancy maintaining the surviving or continuing au

Liquidators powers, Liquidators' Powers:                              ...

Liquidators' Powers:                                       The liquidator (in any type of liquidation) has numerous statutory powers but in the exercise of some of them he mus

Game theoretic approach to multiparty coalition, Game theoretic approach to...

Game theoretic approach to multiparty coalition The seminal work, for the study of game theoretic approach to multiparty coalition formation is Ricker's (1962) titled the theor

Determine the name and elements of the tort, Sue owns a car that has 150,00...

Sue owns a car that has 150,000 miles on it, but otherwise looks to be in very good condition. She advertises to sell the car and Ken asks her how many miles are on the c

Labour laws, Question : Mr Brown was employed by Sun Company Ltd as man...

Question : Mr Brown was employed by Sun Company Ltd as manager of Star Hotel on a 3 year contract starting 1 st July 1990. It was agreed that either side may put an end to the

Loans to directors, Loans to Directors: Section 191(1) renders unlawfu...

Loans to Directors: Section 191(1) renders unlawful any loan made by a company to a director of the company or its holding company. It is also unlawful for the company to guar

Determine the areas of open method of coordination, Determine the areas of ...

Determine the areas of open method of coordination The EU has indicated its intention to employ the OMC, but so far there is little evidence of progress. These areas include E

England Judicial System, England Judicial System Moreover the current ...

England Judicial System Moreover the current England judicial system is prearranged in the form of a pyramid, along with the Court of Appeal at the apex there the High Court i

Dissolution by the court, Dissolution by the Court Conversely Section 39...

Dissolution by the Court Conversely Section 39 of the Act prescribes the state of affairs that the court will decree the compulsory dissolution about a partnership. They are: li

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd