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

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

Prepare a statement of partnership liquidation, After discontinuing the ord...

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership indicate the following: Cash $75,000 Non cash 105,000 Liabilit

Expense during 2013 on patent, In January, 2008, Sanford Corporation purcha...

In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten

Balance sheet, how to solve balance sheet in five million capital

how to solve balance sheet in five million capital

measure the initial investment outlay, Home Inc. is considering buying a n...

Home Inc. is considering buying a new piece of equipment, which will cost $715,000 and has an economic life of 5 years, in order to make a new line of product.  The company suppose

Advise the directors of the entity, An entity had the following transaction...

An entity had the following transactions during the year ended 31 December 2010: The entity invested in a convertible bond on its issue date. The bond matures four years aft

Retained earnings, Q. Retained earnings is increased by each of the followi...

Q. Retained earnings is increased by each of the following except a. some disposals of treasury stock. b. net income. c. prior period adjustments. d. All of these increase retained

Trial balance, Jim owns and manages a small business, which provides an off...

Jim owns and manages a small business, which provides an office design service, as well as buying and selling office furniture. Jim is a sole trader who manages all aspects of the

Course Project writing notes for a fictitious annual report, Do you anyone ...

Do you anyone on staff with the above experience? Notes cannot be copied from any real company''s financial report.

Ex interest, what is ex interest accounting,uses,types

what is ex interest accounting,uses,types

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