Winding Up
Winding Up of Company
The winding up is the process of putting an end to the life of the company. And during this process, the assets of the company are disposed of, the debts of the company are paid off out of the realized assets and if any surplus is left, it is distributed among the members in proportion to their shareholding in the company
Q.1 WHAT ARE THE POWERS OF LIQUIDATOR
LIQUIDATOR
A person appointed to carry out the winding up of a company is called liquidator. If the winding up is through Court, the term used for such person is official liquidator . The duties of liquidator include to realize the property of the company, to pay its debts, and to distribute the surplus (if any) among the members.
The following are the general powers of liquidator:- ❖ To institute or defend any suit, action, prosecution or other legal proceeding, civil or criminal on behalf of the company. ❖ To carry on the business of the company so far as may be necessary or beneficial to it. ❖ To pay to the creditors. ❖ To make any compromise or arrangement with creditors. . ❖ To sell the movable and immovable property of the company by public auction or private contract, with power to transfer to any person or to sell the same in parcels. ❖ To do all acts and to execute all deeds, receipts and other documents in the name and on behalf of the company and for that purpose to use in the company’s seal when necessary. ❖ To draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company ❖ To raise any money on the security of the assets of the company.
Q.2 WHAT ARE THE Consequences of winding up OF A COMPANY?
ANS. Consequences of winding up
As regards the company itself:
Winding up does not mean that the company has ceased to exist. The company exists as a corporate entity with all the rights of
The winding up is the process of putting an end to the life of the company. And during this process, the assets of the company are disposed of, the debts of the company are paid off out of the realized assets and if any surplus is left, it is distributed among the members in proportion to their shareholding in the company
Q.1 WHAT ARE THE POWERS OF LIQUIDATOR
LIQUIDATOR
A person appointed to carry out the winding up of a company is called liquidator. If the winding up is through Court, the term used for such person is official liquidator . The duties of liquidator include to realize the property of the company, to pay its debts, and to distribute the surplus (if any) among the members.
The following are the general powers of liquidator:- ❖ To institute or defend any suit, action, prosecution or other legal proceeding, civil or criminal on behalf of the company. ❖ To carry on the business of the company so far as may be necessary or beneficial to it. ❖ To pay to the creditors. ❖ To make any compromise or arrangement with creditors. . ❖ To sell the movable and immovable property of the company by public auction or private contract, with power to transfer to any person or to sell the same in parcels. ❖ To do all acts and to execute all deeds, receipts and other documents in the name and on behalf of the company and for that purpose to use in the company’s seal when necessary. ❖ To draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company ❖ To raise any money on the security of the assets of the company.
Q.2 WHAT ARE THE Consequences of winding up OF A COMPANY?
ANS. Consequences of winding up
As regards the company itself:
Winding up does not mean that the company has ceased to exist. The company exists as a corporate entity with all the rights of