Proceedings for compulsory liquidation, Business Law and Ethics

Assignment Help:

Proceedings for Compulsory Liquidation:

When the petition is presented to the court a copy is delivered to the company in case it objects, and it is advertised so that other creditors may intervene if they wish.  At the hearing, a creditor whose debt is unpaid is likely to secure an order for compulsory liquidation (as his remedy of last resort) unless the company (paragraph 8) or opposing creditors (paragraph 9) persuade the court to dismiss the petition.                                     

  If the petition is presented by a member (contributory) he must show (in addition to suitable grounds for compulsory liquidation) that:

(a) the company is solvent or alternatively refuses to supply information of its financial position.  The court will not order compulsory liquidation on a member's petition if he has nothing to gain from it.  If the company is insolvent he would receive nothing since the creditors then take all the assets;

(b) he has been a registered shareholder for at least six of the 18 months up to the date of his petition.  But this rule is not applied if the petitioner acquired his shares by allotment direct from the company or by inheritance from a deceased member or if the petition is based on the number of members having fallen below two: CA s.221.

A personal representative of a deceased shareholder may petition but he must first obtain a grant of probate etc. to establish his authority to represent the estate: CA, s.216.  The trustee in bankruptcy of a bankrupt contributory may also petition on his behalf: CA, s.217.


Related Discussions:- Proceedings for compulsory liquidation

Explain unsc resolution 1624 and when it is passed, Explain UNSC Resolutio...

Explain UNSC Resolution 1624  and when it is passed The most-recent such resolution is UNSC Resolution 1624 passed in the year 2005. It states: "1. Calls upon all States to

Statutory form, Statutory Form:                    Section 14 of the A...

Statutory Form:                    Section 14 of the Act provides that the form of the  Memorandum of Association of a company limited by shares shall be in accordance with th

Powerpoint presentation on ethics-sustainability and culture, I will provid...

I will provide a cases from the media that have ethical implications. Please prepare a ppt presentation that: a) describes the issue/story (Clearly identify which case you ar

Business and social agreements, Business and Social Agreements Busin...

Business and Social Agreements Business Agreements Therefore is a rebuttable presumption that parties intended generate a legally enforceable agreement to example in Cr

How to explain the apparent lack of expressions, How to explain the apparen...

How to explain the apparent lack of expressions There are several ways to explain the apparent lack of expressions of the impacts. In fact, there are arguments that political

condition precedent, What is a condition precedent? Provide me with an exa...

What is a condition precedent? Provide me with an example.

Directorship - company management, Directorship - company management: ...

Directorship - company management: A directorship is not a professional job with a legally prescribed qualification. In the circumstances, anybody (even a six-months-old baby)

What are the obligations of the employer, Question 1: Constructive dism...

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who takes the initiative in considering the contract as having be

Law society of us, Law Society of US Establishment However it i...

Law Society of US Establishment However it is established through sec 3 of the Law Society of US Act Cap 18.  Hence it is a body corporate through the name Law Society

Duties of auditors, DUTIES OF AUDITORS: The duties of auditors are exp...

DUTIES OF AUDITORS: The duties of auditors are explained in the following cases. 1. RE: KINGSTON COTTON MILL CO. (1896)(CHANCERY) For some years before a company was wou

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