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

Prospect of inflationary wage settlements, Prospect of inflationary wage se...

Prospect of inflationary wage settlements The same logic can be applied to various supply side policies. Take, for example, the prospect of inflationary wage settlements. If w

Procedure for registration of trade unions, Question 1: (a) The Employ...

Question 1: (a) The Employment Relations Act does not apply to all categories of workers. Describe. (b) What is the main procedure for registration of trade unions? Qu

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

Purchase of own shares - merger accounting, Purchase Of Own Shares: An...

Purchase Of Own Shares: Another possible way in which a company's paid-up capital may leave the company other than in the ordinary course of the company's business would be if

Matters and reports, Matters and Reports: The matters and reports to b...

Matters and Reports: The matters and reports to be stated in a prospectus may be summarised as follows: 1.      The Matters The matters to be stated in a prospectus are:

Evolution of contracting , Evolution of Contracting  Contracts have evo...

Evolution of Contracting  Contracts have evolved over centuries. It is a lawful binding relation between two or more parties. The contractual relationships can occur - from a s

Advantages of arbitration, Advantages of Arbitration (a) First is, Sp...

Advantages of Arbitration (a) First is, Speed : It is a faster scheme of dispute resolution (b) Second is, Convenient : Parties are free for determine as; Th

Bidding process in specific circumstances, QUESTION 1 Section 39 of the...

QUESTION 1 Section 39 of the Public Procurement Act provides for cancellation of a bidding process in specific circumstances. State those circumstances and the implications of

Investigation of companys affairs, Investigation of Company's Membership: ...

Investigation of Company's Membership: Section (1) empowers the registrar to appoint one or   more competent inspectors to investigate and report on the membership of any comp

law enforcement agencies, Do a comprehensive outline and a research paper....

Do a comprehensive outline and a research paper. A well-organized and thoughtful 3-5 page Research Paper in APA format. The impact and use of technology in policing and the cour

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