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

Variation of class rights, Variation of class rights: It is only neces...

Variation of class rights: It is only necessary to follow the variation of class rights procedure (and a dissenting minority can only apply to the court for cancellation)  if

Determine the concept of credibility, Determine the concept of credibility ...

Determine the concept of credibility Let us make it clear that credibility of a policy and that of a policy maker are two different things. Institutional constraints may make a

Defines controlled delivery, Defines Controlled delivery This conventio...

Defines Controlled delivery This convention legalized the act of Controlled delivery and defines "Controlled delivery" as "the technique of allowing illicit or suspect consignm

Discuss the role of policy maker, Discuss the role of policy maker A po...

Discuss the role of policy maker A policy maker, who focuses mainly on the possibility of remaining in the office, faces different set of incentives in choosing policy. He trie

The advisory council for occupational safety and health, QUESTION 1 Dis...

QUESTION 1 Discuss the functions of the following- (a) The Workfare Programme (b) The Advisory Council for Occupational Safety and Health (c) Health and Safety Officer

State the world rate of interest, State the world rate of interest We ...

State the world rate of interest We have assumed that the world rate of interest only falls to equal R 2 . At point B, therefore, the domestic rate of interest is below the wo

Internal and external environment, This project requires you to choose an o...

This project requires you to choose an organisation of your own choice and discuss on the following with respect to your chosen organisation: External Environment Mega

What are the fact finding ethics, The phrase called information overload ma...

The phrase called information overload may be a bit of a problem because it used so often, but the fact remain that managers & support staff are merged in information of all kinds.

The impact of behaviour on the policy agenda, The impact of behaviour on th...

The impact of behaviour on the policy agenda To see the impact of behaviour, on the policy agenda and outcomes, which is generally not apparent, one way is to focus on the basi

The occupational, QUESTION The Occupational, Safety and Health Act 2005...

QUESTION The Occupational, Safety and Health Act 2005 states that Every employer shall, so far as is reasonably practicable, ensure the safety, health and welfare at work of

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