Effects of liquidation on the liquidating corporation

03-Nov-2016 06:11 by 5 Comments

Effects of liquidation on the liquidating corporation - Online hot chatting with boys nonregistration

The liquidator must determine the company's title to property in its possession.

The liquidator is then usually required to send final accounts to the Registrar and to notify the court. However, in common jurisdictions, the court has a discretion for a period of time after dissolution to declare the dissolution void to enable the completion of any unfinished business.They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.Property which is held by the company on trust for third parties will not form part of the company's assets available to pay creditors.Before the claims are met, secured creditors are entitled to enforce their claims against the assets of the company to the extent that they are subject to a valid security interest.75 percent of the company's shareholders must agree to liquidate for liquidation proceedings to advance.

If the company is solvent, and the members have made a statutory declaration of solvency, the liquidation will proceed as a members' voluntary winding-up.In that case the general meeting will appoint the liquidator(s).If not, the liquidation will proceed as a creditors' voluntary winding-up, and a meeting of creditors will be called, to which the directors must report on the company's affairs.Voluntary liquidation occurs when the members of a company resolve to voluntarily wind up its affairs and dissolve.Voluntary liquidation begins when the company passes the resolution, and the company will generally cease to carry on business at that time (if it has not done so already).Where a voluntary liquidation proceeds as a creditors' voluntary liquidation, a liquidation committee may be appointed.