Dividends-bankruptcy and liquidation, Financial Accounting

Assignment Help:

DIVIDENDS

Dividends must be declared and paid in accordance with the following rules:

1) The first dividend must be declared and paid within four months of the first meeting of the creditors, unless postponed with the consent of the committee of inspection;

2) Subsequent dividends must be declared and paid at intervals of not more than six months;

3) The trustee must give not more than two month's notice of intention to declare a dividend to every creditor mentioned in the statement of affairs who has not proved his debt, requiring proof to be lodged not later than a date at least 14 days from the date of the notice; he must admit or reject all proofs within 14 days of the date specified; appeal against rejection must be commenced within seven days; the trustee must have the notice gazetted;

4) After declaring a dividend, details thereof must be sent to every creditor who has proved and must be gazetted;

5) The trustee must make provision for creditors who have not had time to submit proofs, or to establish disputed claims, and for the expenses of administration;

6) A creditor who has not proved before declaration of a dividend may be paid if the trustee has any money still in his hands, and may participate in future dividends;

7) If a dividend is paid on a future debt, a rebate of interest at 6% per annum from the date of the dividend to the date for payment of the debt must be deducted;

8) A final dividend may be declared when all the bankrupt's property has been realised, or so much of it as can be realised without needlessly protracting the trusteeship; notice must be given to persons who have notified, but have not established, their claims, requiring them to do so within the time specified in the notice;

9) Unclaimed dividends remaining in the hands of the trustee for six months must be paid into the Bankruptcy Estates Account; the receipt of the Official Receiver discharges the trustee in respect thereof, any claimant must apply to the Official Receiver for payment.


Related Discussions:- Dividends-bankruptcy and liquidation

What is the impact on net income, The Budvar Company purchases parts from a...

The Budvar Company purchases parts from a foreign customer on December 1, Year 1, with payment of 20,000 crowns 20,000 crowns to be made on March 1, Year 2.  Budvar enters into a f

Shorter compounding period, In our discussion so far, we have supposed that...

In our discussion so far, we have supposed that the compounding is done yearly, here let us see the case where compounding is complete more often.  In such case the equation (1) is

Treasury stock, 1-Dec $92,000.00 of 5% bonds are purchased with check. Int...

1-Dec $92,000.00 of 5% bonds are purchased with check. Interest is paid once a year and will mature in 5 years. The market yield for these bonds is 4%.

The federal government, The Federal Government The Federal Government...

The Federal Government The Federal Government is the single largest influence on the U.S. economy. There are two main areas in which the government can impact the economy: fi

Pooling of interest, Pooling of Interest - Used to account for acquisition ...

Pooling of Interest - Used to account for acquisition of another company when acquiring company exchanges its voting COMMON STOCK for voting common stock of the attained company wh

Computation and purpose, A summary of management oriented activity ratio ar...

A summary of management oriented activity ratio are specified below. It describes the ratios and also their major purposes. Activity Ratios (Secondary Group) The numer

Cash flow statement, In additional information depreciation of two years is...

In additional information depreciation of two years is given. What is the treatment of it while preparing fixed assets account.

Review a certified public accountant, Review - Accounting service which pro...

Review - Accounting service which provides some assurance as to reliability of financial information. In a review, a CERTIFIED PUBLIC ACCOUNTANT (CPA) doesn't conduct an examinatio

Design an asset allocation for the superannuation fund, Your task in this a...

Your task in this assignment is to design an asset allocation for the superannuation fund of an individual who is investing to fund his retirement. The asset classes under consider

Provable debts-bankruptcy and liquidation, PROVABLE DEBTS All debts and...

PROVABLE DEBTS All debts and liabilities present or future, certain or contingent, are provable in bankruptcy, except: 1) Claims for unliquidated damages in tort; 2) Debts

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