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

Leslie, My trial balance is off by $304 and I can''t find my error

My trial balance is off by $304 and I can''t find my error

Determine the amount of retained earnings, From the information provided, d...

From the information provided, determine: 1.) The amount of retained earnings at December 31 and 2.) The amount of revenues for the period. Additional data: 1.)Expenses

Process to increase the financial health of company, Process to increase th...

Process to increase the financial health of company Financial affairs of a limited company enter public domain. With exception of small companies, there is also a requirement f

Prepare a statement to show the total production overheads, Aristo Ltd uses...

Aristo Ltd uses a system of absorption costing. The product passes through a machining department and an assembly department before it is completed. The assembly department is labo

Explain the favorable variance, Question: The manager of Ben and Jerry's Ic...

Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi

Financial management, What can a financial institution often do for a defic...

What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?

Equity shareholders, Equity shareholders, potential and present, seem prima...

Equity shareholders, potential and present, seem primarily to the company's record of earnings. They are thus interested in relationships as earnings per share or EPS and dividends

Simple balance sheet statement, Current analysis You will need about $1...

Current analysis You will need about $150,000 in start-up costs but you can only borrow half of that amount from your family's home equity (at 13% interest). You will have to b

Strengths and weaknesses of capital asset pricing model, Q. Strengths and W...

Q. Strengths and Weaknesses of Capital asset pricing model? Strengths - Gives a risk adjusted discount rate precise to the project's activities. - Books of betas are r

business strategy-vertical horizontal or conglomerate , What was the busin...

What was the business strategy underlying the merger? How was the acquisition financed? Was it a vertical, horizontal or conglomerate merger?   The strategy behind those merge

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