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 is the appropriate revenue recognition, Moto Knappy is a manufacturer ...

Moto Knappy is a manufacturer of automobile motors. The manufacturing process takes a couple of months. The company produces several standard and custom models. To simplify this

Explain universal jurisdiction of criminal jurisdiction, Explain Universal ...

Explain Universal jurisdiction of criminal jurisdiction It is concerned with the application of a State's criminal jurisdiction in respect of offences committed against the int

Explain the modes of acquiring territory, Explain the modes of  acquiring ...

Explain the modes of  acquiring territory There are certain modes of  acquiring territory. Before 1948, there were a  lot  of  territories available and mostly areas were unkno

What is the theory of contracts, What is the Theory of Contracts The sp...

What is the Theory of Contracts The specialized relationship between principal and agent and between agents themselves in the policy process has been explained with the economi

District magistrate''s court -civil appeals, District Magistrate's Court -C...

District Magistrate's Court -Civil Appeals Moreover in S.11 (1) of the Magistrate's Court Act gives that 'any person who is aggrieved through an order of a magistrate's court

Explain importance of jurisdiction, Explain importance of Jurisdiction ...

Explain importance of Jurisdiction Jurisdiction is  an  important  and  extensive concept  referred  to  and  used  very  frequently in international law. It provides clear n

What are the disadvantages of delegated legislation, What are the disadvant...

What are the disadvantages of delegated legislation? Disadvantages of delegated legislation: • The delegated body that is responsible for the legislation is not represent

Publication of bills , Publication of Bills in the England Gazette: Su...

Publication of Bills in the England Gazette: Such there order 98 which offers that no Bill shall be intract unless it has been published in the Gazette and a certain time of f

What is the meaning of policy convergence, What is the meaning of Policy Co...

What is the meaning of Policy Convergence Under representative democracy - the number of voter with each preferred policy proposal can be illustrated by a frequency distributio

Summary of the international humanitarian laws, Summary of the internationa...

Summary of the international humanitarian laws The main objectives/summary of the international humanitarian laws can be divided into a few parts which are as follows: D

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