Disclaimer-liquidation of companies, Financial Accounting

Assignment Help:

Disclaimer

The liquidator may disclaim onerous property consisting of:

1.    Land burdened with onerous covenants;
2.    Stocks and shares;
3.    Unprofitable contracts, or
4.    Other property which is not saleable by reason of the liabilities attaching thereto;

and thereupon all the rights, interests and liabilities of the company in relation to the property are determined as from the date of disclaimer.

The liquidator may disclaim in writing at any time within twelve months after commencement of the winding up, or such extended period as the court may allow.

This right is lost if a person interested in the property applies in writing for him to decide whether he will disclaim or not; in this case the liquidator must give notice of disclaimer within 28 days of receiving the application, unless the court extends the time.

The court's consent is not required to the disclaimer except in the case of certain leases.

Any person interested in property disclaimed may apply to the court for an order vesting the property in himself.

Any person injured by the disclaimer may prove in the liquidation to the extent of his loss.


Related Discussions:- Disclaimer-liquidation of companies

605, I am working on the comprehensive probelm and I can not figure out the...

I am working on the comprehensive probelm and I can not figure out the trial balance. Where am I going wrong?

Example of abc analysis, Illustration: Dinesh Limited is looking selective...

Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items                 A           B

What is cs optimal decision, Copper Suppliers, Inc. (CS), is a distributor ...

Copper Suppliers, Inc. (CS), is a distributor of commercial grade copper. CS purchases copper directly from copper mines and then after refining it, sells the refined copper to in

Show calculation of project net present value, Q. Show Calculation of proje...

Q. Show Calculation of project net present value? Sensitivity of NPV to sales volume Sales volume giving zero NPV = ((50000/3·605) + 10000)/1·35 = 17681 units This i

Acc 400, d. Prepare the summary journal entry required to transfer finished...

d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January. e. Compute the total cost assi

Demand curve for a consumer, Suppose the consumer is at coffee shop 1. Coff...

Suppose the consumer is at coffee shop 1. Coffee shop 1 charges $2.00 per cup. - Draw and label the demand curve for a cup of coffee for the consumer (please do not forget to sp

Principles of banking and finance, Q. Principles of banking and finance? ...

Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi

A case study on timbertops, Q. A case study on TIMBERTOPS? Cost of cap...

Q. A case study on TIMBERTOPS? Cost of capital Use Ke = Do (1 + g)/ Po + g where g = br Retention rate b = 245 ÷ 442 = 55% Return on capital r = 442 ÷ (1,932 -

The brownstone corporation''s bonds , a) What will be the value of every of...

a) What will be the value of every of these bonds when the going rate of interest is 12%? Suppose that there is only one more interest payment to be made on Bond S. Round your answ

Deferred tax assets and deferred tax liability, Below are excerpts from Saf...

Below are excerpts from Safeway's 2010 Annual Report, including its Consolidated Balance Sheets, a portion of Note E, Lease Obligations, and Note H, Taxes on Income, from the Notes

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