Realisation of assets-liquidation of companies, Financial Accounting

Assignment Help:

Realisation of assets

1. Divisible property:

The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but he must take it under his control and apply it in satisfaction of the debts, and distribute any surplus among the members according to their respective rights and interests ss.239,296. The property available for this purpose is:

  • All the property of the company at the commencement of winding up.
  • Property seized in execution of a judgement which was not completed by that  date
  • Property used to give a fraudulent preference to creditors s313.  Any transaction made by a company which cannot meet its debts as they fall due with a view to preferring one creditor to another, within 6 months of the commencement of the winding up, is void.

 

2. Recovery of property:

The following steps may be taken to recover the company's property:

  • A private examination many be held by the court of any person thought capable of giving information as to the company's property or affairs s.263
  • Public examination of a promoter or officer may be held on a further report by the Official Receiver s.265: (see paragraph g,3 above)
  • If it appears that the company has carried on business with intent to defraud creditors or for any fraudulent purpose, the court many order any person who were knowingly parties to the fraud to be personally liable without any limitation of liability for such debts of the company as the court may direct s.323.
  • Misfeasance proceedings may be brought against any promoter, officer, manager or liquidator for the recovery of money or property or the contribution of a just sum to the company's assets s.324.

Related Discussions:- Realisation of assets-liquidation of companies

Define strong form efficiency, Q. Define Strong form efficiency? In rob...

Q. Define Strong form efficiency? In robustly efficient market finance directors will be alert to the fact that market prices are an accurate reflection of their company's fina

Record performance of the services, Robin Corporation accepted credit cards...

Robin Corporation accepted credit cards for $34,200 of services performed in October 2011.The credit card company charged a 3% service fee and paid Robin as soon as it received the

Explain why the operating cycle, The Operating Cycle Two Wheeler Cycle Shop...

The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufacturer, Baxter Bikes. On average, bikes are on hand for 45 days before Two Wheeler sells them. The c

Cash flow statement, does closing balance of cash flow statement equals to ...

does closing balance of cash flow statement equals to cash in balance sheet

Illustration regarding profit that head office can claim, Illustration rega...

Illustration regarding profit that head office can claim E Ltd sets up a branch in Nyeri on 1 July 2001. Goods are sent to branch at an invoice price which is 10% above cost. S

#title Accounting.., The business changed their policy with regards to the ...

The business changed their policy with regards to the profit mark-upfrom 2018 to 2019 financial year. What was the changed.

Lenders evaluation, Lenders'  evaluation:   Current  Assets  to  Current  L...

Lenders'  evaluation:   Current  Assets  to  Current  Liabilities,  Quick  Assets  that is current assets minus inventories to Current Liabilities, Long term Debt to Net Assets, to

How much are joe''s shares worth after the stock split?, Joe Shareholder ow...

Joe Shareholder owns 100 shares of Peach Company stock which is currently selling for $100 per share. Peach declares a 2-1 stock split. How much are Joe's shares worth after the st

What is the interest receivable and interest revenue, Journalize the entrie...

Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Date Face Amount Term Interest Rate 5. Nov. 15 $54,000 60days 6% 6. Dec. 27 $40,500

What is lifetime learning credit, Q. What is Lifetime Learning Credit? ...

Q. What is Lifetime Learning Credit? Lifetime Learning Credit - This allows a credit for 20 percent of qualified tuition and fees paid by taxpayer with respect to one or more s

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