Compulsory liquidation - winding up, Business Law and Ethics

Assignment Help:

Compulsory liquidation - winding up:

There are a number of points of similarity:

(a) in a compulsory (but not a voluntary) liquidation the directors have to submit a statement of affairs to the Official Receiver as provisional liquidator. If a receiver is appointed under a floating charge covering the company's undertaking as a whole he too is entitled to be given a statement of affairs.

(b) accountants who specialize in insolvency may be appointed as liquidators or as receivers (sometimes they combine these positions in the same company but professional opinion in the U.K. has hardened against this position since there can be difficult conflicts of interest to resolve between unsecured creditors and members on one side and secured creditors on the other);

(c) a receiver appointed under a floating charge is also manager of the business (or a manager is appointed to assist him). His function is to continue to carry on the business on a going concern basis. The liquidator's function is to sell the company's assets on the best terms he can get. As closure costs (redundancy payments to employees etc.) can be heavy a liquidator may decide to carry on the business with a view to selling it as a going concern. But this is only one of the alternatives open to him;

(d) neither liquidator nor receiver usually has the assets of the business vested in his legal ownership (though a liquidator may obtain a court order for assets to be vested in him under CA, s.240 - but this is not common). Both liquidator and receiver have control of the company's assets.


Related Discussions:- Compulsory liquidation - winding up

Jurisdiction - high court, Jurisdiction - High Court Whether under Sec...

Jurisdiction - High Court Whether under Section 60 of the constitution states in which the High Court shall have 'unlimited original jurisdiction in civil and the criminal mat

Glen signs a release, Glenda has taken a household insurance on her classic...

Glenda has taken a household insurance on her classic Queenslander home in North Queensland.  At the time of application, the insurer "URINSURED" asked various questions regarding

Normative ethics theory, As you have already learned during your tenure at ...

As you have already learned during your tenure at Midwest Valueland (MV) and from exposure to business news, it is not unusual for leaders and managers to encounter ethical situati

State article 6 of air and outer space law, State Article 6 of air and oute...

State Article 6 of air and outer space law Article 6 states that no scheduled international air service may be operated over or into the territory of a contracting State, excep

African customary law, African Customary Law However African customary...

African Customary Law However African customary law may be specified as the law based on the customs of the ethnic groups that constitute England's indigenous population. Now

Bidding process in specific circumstances, QUESTION 1 Section 39 of the...

QUESTION 1 Section 39 of the Public Procurement Act provides for cancellation of a bidding process in specific circumstances. State those circumstances and the implications of

What was the state responsibility, Normal 0 false false fal...

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

Case, Corgi was the breeder of prize-winning pedigree dogs that often sold ...

Corgi was the breeder of prize-winning pedigree dogs that often sold for very high prices. Reynolds, a wealthy businessman who had recently retired, decided to purchase one of thes

What is the neighbour rule, What is the neighbour rule? Duty of care:...

What is the neighbour rule? Duty of care: There is a duty of care by anyone to other where this can be reasonably foreseen which one’s action may injure another (negligen

Termination of an offer - revocation, Termination of an Offer - Revocation ...

Termination of an Offer - Revocation Such offer is "revoked" whether the offeror changes his thinking and withdraws it as for expressly or impliedly.  However to be valid suc

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