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

Delivery of good – sales of goods, Delivery of Good – Sales of Goods T...

Delivery of Good – Sales of Goods Therefore this is the voluntary transfer of possession from one person to other. Actually delivery usually takes any of the next forms, namel

Legal environment in the education sector, QUESTION 1 The use made of d...

QUESTION 1 The use made of decision-making bodies such as commissions, boards, tribunals and statutory bodies for the purpose of achieving celerity in public affairs opens the

Domestic or family agreements - elements of contract, Domestic or Family Ag...

Domestic or Family Agreements - Elements of Contract However there is a rebuttable presumption such the parties did not intend for create legal relations as: 1. Agreements

Regulations regarding electricity, REGULATIONS REGARDING ELECTRICITY : You...

REGULATIONS REGARDING ELECTRICITY : You are aware that electricity is the most common and convenient source of power. You know that carelessness in handling or maintenance of elec

State article 10 of air and outer space law, State Article 10 of air and ou...

State Article 10 of air and outer space law Article 10 allows the aircraft to cross the territory of a contracting State without landing, and further states that every aircraft

Compulsory change - change of name , Compulsory Change: Section 20(2) ...

Compulsory Change: Section 20(2) of the Act provides that within six months of registration with a particular name the registrar may direct a change in name if in his opinion

Involuntary restraints - law of contract, Involuntary Restraints - Law of C...

Involuntary Restraints - Law of Contract Although these are restraints imposed by professional bodies and trade associations at their members to certain purposes as e.g. enhan

Name based definition of phoenix activity, Q. Name based definition of phoe...

Q. Name based definition of phoenix activity? The approach taken in New Zealand has been to define phoenix activity in terms of the re-use of the name, or a name similar, to th

Successfully sue michael in negligence, It was late at night and very wet a...

It was late at night and very wet and, rather than wait for a taxi to take her home, Anna was only to happy to accept a lift from Michael. He smelt strongly of alcohol and had trou

Common law rule - meetings and resolutions, Common law rule - meetings and ...

Common law rule - meetings and resolutions: The common law rule applies irrespective of whether the failure to give notice of the meeting was deliberate or unintentional.  How

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