the effects of the commencement of the winding up on the creditors‚ the company and the employees. Winding up is the process to bring an end the existence of the company. It is also known as liquidation. When a company is liquidated‚ its structure survives the appointment of a liquidator‚ but not the liquidation. Control of assets‚ conducting business‚ and other financial affairs are transferred to the liquidator. The directors cease to have any authority. All bank accounts are frozen‚ any employment
Premium Bankruptcy Liquidation Secured creditor
Agency Partnerships and companies contract through agents. Partners can be agents of the partnership; directors agents of the company. Most cases agents have actual authority If no authority then ostensible authority may apply. Associations Not for profit for members. Types: Unincorporated > 2 members Liability to outsiders uncertain Incorporated >5 members Registered Members liability limited Associated can be sued Sole Trader One person owns business Take profit and bear
Premium Stock Corporation Liquidation
Aron Salomon was a successful leather merchant who specialized in manufacturing leather boots. For many years he ran his business as a sole proprietor. By 1892‚ his sons had become interested in taking part in the business. Salomon decided to incorporate his business as a Limited company‚ Salomon & Co. Ltd. At the time the legal requirement for incorporation was that at least seven persons subscribe as members of a company i.e. as shareholders. Mr. Salomon himself was managing director. Mr. Salomon
Premium Bankruptcy Liquidation Floating charge
voluntarily winding up 2. Creditors winding up Members voluntarily winding up: A Board Meeting is convened to transact the following business: (a) Making sure that the company can pay its debts in full within a period of three years if put into liquidation. (b) Declaration in Form No. 149 under Rule 313 of the Companies (Court) Rules‚ 1959‚ and verified by an affidavit‚ by the Directors sworn before a Judicial Magistrate on non-judicial stamp paper of Rs. 20/-. (c) The Declaration will be
Premium Newspaper Balance sheet Asset
1248 EP-CL-35 STUDY XXXV WINDING UP OF COMPANIES NOTE: Wherever the term ‘Court’ is being used in the chapter that will be substituted by ‘Tribunal’ in accordance with vide Companies (Second Amendment) Act‚ 2002 w.e.f. a date yet to be notified. INTRODUCTION -It is the process by which a company’s life is ended and its property administered by liquidator or administrator for the benefit of creditors and members -A company can be wound up even when it is solvent DIFFERENCES BETWEEN
Premium Bankruptcy Liquidation Debt
winding up of a company. A Contributory can be past or present member and is liable to contribute to the assets of the company in the event of winding up. In the instant case‚ Mr. Gupta ceased to be a member of the Company when it went into liquidation from 15.3.2002. Thus‚ Mr. Gupta will be treated as a past member. He will not be required to contribute to the assets of the company if the following conditions are fulfilled: (1) If Mr. Gupta had ceased to be a member of the company for a period
Premium Liquidation Bankruptcy Secured creditor
Compulsory Liquidation Remedies 1. Introduction * Deficiency of current law: (1) despite introduction of statutory derivative action‚ formulation is unclear and scope is uncertain (2) focus on single act/transaction rather than whole picture/pattern/period (3) remedies are directed to particular transaction and confined to restraint of conduct‚ Recovery of property or ordering of financial compensation * Statutory remedies fall into 2 categories a. Compulsory liquidation remedies courts
Premium Bankruptcy Liquidation
business ventures. Bankruptcy is a federal program‚ which offers an individual or business entity alleviation from all debts obtained‚ both secured and unsecured. A bankruptcy filing offers relief to those in debt‚ through either liquidation or restructuring. Liquidation refers to the selling of the underlying debtor’s assets. When these assets are sold the proceeds are used to fulfill their debt obligations. The laws and regulations which govern bankruptcy are distributed and overheard at the
Premium Bankruptcy Liquidation Money
1. Meaning of Winding up or liquidation The winding up or liquidation of a company means the termination of the company by stopping its business‚ collecting its assets and distributing creditors and shareholders‚ in the manner laid down in the Act. 2. Mode Of Winding Up According to section 234‚ the winding up of a company)‚ may be done in any three ways: one of the following (I) Compulsory winding up by the Court (ii) Voluntary winding up b)‚ the members or by creditors (iii) Voluntary
Premium Liquidation Bankruptcy Appeal
Discuss the various grounds upon which the Court can order that a company be wound up compulsorily. B.H McPherson defines winding-up as a process whereby the assets of a company are collected and realised‚ the resulting proceeds are applied in discharging all its debts and liabilities‚ and any balance which remained after paying the cost and expense of winding-up is distributed among the members according to their rights and interests or otherwise dealt with as the constitution of the company
Premium Bankruptcy Liquidation Debt