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

Corporation aggregate - types of corporations, Corporation Aggregate - ...

Corporation Aggregate - Types of Corporations However this is a legal entity formed through at least two people and whose membership at any one time legally concludes of a

Purchase of own shares - merger accounting, Purchase Of Own Shares: An...

Purchase Of Own Shares: Another possible way in which a company's paid-up capital may leave the company other than in the ordinary course of the company's business would be if

Recent developments in mitigating phoenix activity, Q. Show Recent developm...

Q. Show Recent developments in mitigating phoenix activity? Since these previous works, there have been significant developments in mitigating phoenix activity. Following Tr

Hire-purchase law, Hire-Purchase Law A person who wants to buy goods t...

Hire-Purchase Law A person who wants to buy goods through does not have the like "money consideration" prescribed through the Sale of Goods Act like their price may enter in a

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

International financial crime , During the first lecture students asked for...

During the first lecture students asked for some assessments topics to guide them in the decisions that they need to take. Please note that: 1   Students may still formulate the

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

State montevideo convention, State Montevideo Convention Montevideo C...

State Montevideo Convention Montevideo Convention states : "The political existence of the state is independent of recognition by other States. Even before recognition the st

State article 1 of air and outer space law, Laws relating to air and outer...

Laws relating to air and outer space as follows: Article 1 states that the contracting states should recognize that every state has complete and exclusive sovereignty over the

Subrogation - void contracts, Subrogation - Void Contracts       Howeve...

Subrogation - Void Contracts       However in Re National Permanent Benefit Building Society would the court stated that where an infant obtains a loan for necessaries and real

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