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

Synopsis, Who would think a documentary about the collapse of a mammoth cor...

Who would think a documentary about the collapse of a mammoth corporation could play out like a drama with the emotional power of Greek tragedy? But that is the impact of enroll:th

Quorum, QUORUM: However a quorum is the minimum number of persons who ...

QUORUM: However a quorum is the minimum number of persons who must be present at a meeting in order that the meeting may validly transact the business for that it was convened

Define the nuclear law of international law, Nuclear law The importance...

Nuclear law The importance of international law relating to nuclear law lies in the fact that it regulates, conducts and prohibits the use of nuclear weapons. The United Nation

Adequacy of consideration - law of contract, Adequacy of consideration - La...

Adequacy of consideration - Law of Contract Well provided that consideration is sufficient, or actual it necessitate not be adequate.  Hence the court will not compare the val

Necessity - law of agency and partnership, Necessity - Law of Agency an...

Necessity - Law of Agency and Partnership Therefore an agency of necessity may subsist either domestic or commercial: Commercial Agency of Necessity: Although

International court of justice of united nations, Discuss about the Interna...

Discuss about the International Court of Justice as the organisation of United Nations. The International Court of Justice (ICJ): Its major functions are to settle legal

Mode of alteration, Mode of Alteration:  The alteration of capital may...

Mode of Alteration:  The alteration of capital may be made by - 1) Increasing the company's share capital by new shares of such amount as the resolution prescribes; or 2

Administration of the law, ADMINISTRATION OF THE LAW: Furtherly a sour...

ADMINISTRATION OF THE LAW: Furtherly a source of law is the origin of the rule that legal principle or constitutes a law.  Conversely the phrase 'sources of England law' that'

State the term - policy coordination, Policy coordination Policy coord...

Policy coordination Policy coordination occurs when countries agree to pursue policies intended to promote the welfare of all nations involved in the agreement. Spillover effe

Explain constituent instruments, Explain Constituent instruments Consti...

Explain Constituent instruments Constituent instruments of international organizations, in which a treaty becomes a statute of an international organization, for example, Inter

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