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

Transactions arising in a liquidation, Transactions Arising In A Liquidatio...

Transactions Arising In A Liquidation: In collection in and realisation of assets in order to pay the company's debts and then to distribute any surplus to members the liquida

Define your point of view about international legal relation, Define your p...

Define your point of view about international legal relation. International legal relations: International law covers the matters which may occur between countries not li

Fraud or improper conduct, Fraud or improper conduct: English courts h...

Fraud or improper conduct: English courts have intervened on numerous occasions and lifted the veil of incorporation in order to circumvent a fraudulent or improper design by

Case study:employment law, Jonathan has been in the continuous employment o...

Jonathan has been in the continuous employment of Dockland cleaning and laundry Co. Ltd since 1st August 2000. He is also a member and secretary of the Cleaning and Laundry Workers

Guide - african customary law, Guide - African Customary Law Furth...

Guide - African Customary Law Further the courts are to be "guided" through African customary law.  Conversely this provision provides a judge discretion whenever to allow

Types of agents - agency law, Types of Agents - Agency Law Although br...

Types of Agents - Agency Law Although broadly agents are either special or might be general depending on the scope of authority.  Subsequently an agent engaged to carry a task

What is the meaning of pareto inefficient outcomes, What is the meaning of ...

What is the meaning of Pareto inefficient outcomes Policy coordination is, therefore, designed to avoid Pareto inefficient outcomes. In absence of a supranational authority tha

Deadlock in the management, Deadlock in the management: The company ex...

Deadlock in the management: The company existed only to "work a particular patent" and as it could not do so it should be wound up. But if there are two or more alternative

Reading - categorization of law, READINGS: First Reading In this ...

READINGS: First Reading In this order 101 provides like "every Bill shall be read a First Time without motion made or enquiry put and shall be ordered to be read a second

Choice of name - name clause, Choice of Name - Name Clause: However, i...

Choice of Name - Name Clause: However, it might be relevant to note that the registrar of English companies, pursuant to his powers under the corresponding section of the Engl

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