Effect of voluntary winding up, Business Law and Ethics

Assignment Help:

Effect of Voluntary Winding Up:

The main difference in legal consequences between a compulsory and voluntary winding up are:

(a) A voluntary winding up commences on the day when the resolution to wind up is passed.  It is not retrospective;

(b) The Official Receiver does not become provisional liquidator.  The members or creditors select and appoint the liquidator and he is not an officer of the court;

(c) There is no automatic stay of legal proceedings against the company nor are previous dispositions or seizure of its assets void.  But the liquidator in a voluntary winding up has a general right to apply to the court to make any order which the court can make in a compulsory liquidation.  He would do so to prevent any creditor obtaining an unfair advantage over other creditors;

(d) The liquidator replaces the directors in the management of the company (unless he decides to retain them).  The employees are not automatically dismissed by commencement of voluntary liquidation.  But insolvent liquidation may amount to repudiation of their contracts of employment (and provisions of the statutory employment protection code apply).


Related Discussions:- Effect of voluntary winding up

Safety and health officer in an organization, QUESTION 1 What are the d...

QUESTION 1 What are the duties of an Occupational, Safety and Health officer in an organization? QUESTION 2 Section 47 (1) of the Occupational, Safety and Health Act st

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

Compromise or arrangement - reconstructions, Compromise or arrangement - re...

Compromise or arrangement - reconstructions: A scheme of arrangement is very flexible since it may be used to effect any "compromise or arrangement" with members or a class of

Approval of the scheme - mergers and winding up, Approval of the scheme - m...

Approval of the scheme - mergers and winding up: A scheme of arrangement was agreed between Hambros and Hellenic whereby the shareholders of Hellenic were to have their shares

Effectiveness of challenge and appeal mechanisms, Question 1: Taking th...

Question 1: Taking the case of Mauritius, in the machinery of government, the Procurement Policy Officer is the central organ of the Government that regulates the procurement

Determining the capital requirements for credit risk, Question: a) The...

Question: a) The first pillar of Basel II provides a range of options for determining the capital requirements for credit risk and operational risk to allow banks and supervi

Advertising gambit, Bagra Used Cars Ltd. has as the most prominent show on ...

Bagra Used Cars Ltd. has as the most prominent show on its lot an immaculate, highly polished model which rotates slowly on a raised circular platform under powerful floodlights. T

Domicile law of uk, Domicile law of UK However a person's domicile is ...

Domicile law of UK However a person's domicile is such country in where he either has or is deemed through law to have, his permanent home.  Hence it is the country of permane

Compensation for loss of office - company management, Compensation for Loss...

Compensation for Loss of Office: (a) Section 192 makes it unlawful for a company to make a director any payment by way of compensation for loss of office, or  may as considera

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