Liquidation of companies-bankruptcy and liquidation, Financial Accounting

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LIQUIDATION OF COMPANIES

(a) Methods of Winding Up:

A company may be wound up:By the court, Voluntarily, either as a members' or a creditors' winding up; or Subject to the supervision of court.

Grounds for compulsory winding up:

A company may be wound up by the court under s.219 if:The company so resolves by special resolution, The number of members fall below seven, or two if a private company tetc.

Persons Who May Petition:

A petition may be presented by any of the following: A Creditor, A Contributory, The Official, The Company Receiver.

The Petition:

The petition must be in the prescribed form and verified by affidavit, and must be advertised in the Gazette and a local paper seven clear business days before the hearing.

Interim Liquidator
:

An application to the court for such an appointment (usually of the O.R.) may be made at any time between presentation and hearing, especially if the assets are in jeopardy s.235: he takes control of all the company's property and no legal proceedings can thereafter be begun or continued against the company without leave of the court s.228.


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