Members voluntary winding up-liquidation of companies, Financial Accounting

Assignment Help:

Members Voluntary Winding Up

The company may be wound up by the members themselves without reference to the creditors, if the company is solvent.

1) Declaration of solvency:

To do this all the directors, or a majority if more than two, must make a statutory declaration of solvency to be filed with the registrar within the 30 days preceding the resolution to wind up. This must state that the directors have made a full inquiry into the company's affairs and have formed the opinion that the company will be able to pay its debts in full within a period not exceeding twelve months of the commencement of winding up, and it must embody a statement of the company's assets and liabilities practicable date s.276.

2) Appointment of liquidator:

The liquidator is appointed and his renumeration fixed by the members in general meeting s.278, and any vacancy is filled in the same way s.279. He must advertise his appointment in the Gazette and notify it to the registrar within 14 days s.299. The court has power, if necessary, to appoint and remove a liquidator s.298.  The liquidator has similar powers to those in compulsory winding up, and also the power to make calls and convene meetings s.297.

3. Further meetings:

If the winding up continues for more than a year, the liquidator must convene a meeting of the company at ` the end of that and each further year, and lay before it an account of his conduct of the winding up during the preceding year s.282.

4. Dissolution

When the winding up is complete, the liquidator must call a final meeting of the company by one month's notice in the Gazette and in a local newspaper, and lay before it an account of the winding up and the disposition of the company's property. He must send a copy of this account and a return of the holding of the meeting within a week thereof to the registrar, and after a further three months the company is automatically dissolved s.283: but the court may declare the dissolution void within the next two years s.338.


Related Discussions:- Members voluntary winding up-liquidation of companies

What is the pension expense that cooper enterprises, The following informat...

The following information for Cooper Enterprises is given below: December 31, 2013 Assets and obligations Plan assets (at fair value) $200,000 Accumulated benefit obligation 370,00

The common stock of warner inc, The common stock of Warner Inc. is currentl...

The common stock of Warner Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share

Determine the net present value - cost of capital, What is the net present...

What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 p

Determine the goodwill calculation, A company purchased 16 million shares (...

A company purchased 16 million shares (representing an 80% controlling interest) in another company on 1 July 2010. The terms of the purchase were as follows:    1 share in

Evaluate break-even production units, Q. Evaluate Break-Even Production uni...

Q. Evaluate Break-Even Production units? R.S. Manufacturing Ltd. Budgets production of 3,00,000 units at cost of Rs.10 each. The Fixed costs are Rs.20, 00,000. The selling pric

Required return on equity, Q. Required return on equity? Required retu...

Q. Required return on equity? Required return on equity Where D 1 = Next year's dividend g = Dividend growth rate P o = Market price of share r = Percentag

Derive the optimal value of loss function, Derive the Optimal Value of Loss...

Derive the Optimal Value of Loss Function A speculative attack and the consequent currency crisis may not be due to excessive money-growth or other misaligned fundamentals, bu

Accounts under trustee-trusts laws and accounts, ACCOUNTS UNDER TRUSTEE ...

ACCOUNTS UNDER TRUSTEE (a) Authorised investments The investments which trustees are permitted to hold may be specifically stated in the will or deed constituting the se

Receiver necessary statement-bankruptcy, Receiver necessary statement T...

Receiver necessary statement The receiver may, if necessary, require the statement to be submitted by: Past or present officers of the company Persons who have taken

Capital recovery factor, Equation illustrates the relationship in between P...

Equation illustrates the relationship in between PVA n , A, K and n. So manipulating this a bit: We find that A = PVA n [(k (1 + k) n )/((1 +k) n - 1)] [(k (1 + k) n )/(

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