Essay about Winding Up of a company, Company Law - 2067 Words.

Just and Equitable Winding-up. Naomi also can also bring a petition through the Insolvency Act 1986 s. 122(1)(g), though its chances of success are comparatively much lower. Harman J in Re a Company (No 00370 of 1987) found that a failure to pay.

The winding-up of a company by the Court is deemed to commence from the time of the presentation of the petition for winding-up (Sec. 441). Where there is a resolution for voluntary winding-up, before the presentation of the petition to Court, the winding-up is deemed to commence from the date of the resolution. But the Court may direct otherwise in cases of fraud and mistake.

The liquidator(s) appointed upon the winding up of the company to manage the affairs of the company for the purpose of the liquidation shall: 1. investigate the affairs and assets of the company as well as the conduct of its directors and other related persons; 2. recover and realise the company’s assets at the best possible price and in a.

Where, before the presentation of a petition for the winding up of a company by the Court a resolution has been passed by the company for voluntary winding up, the winding up of the company shall be deemed to have commenced at the time of the passing of the revolution, and under the court, on proof of fraud or mistake thinks fit to describe.

READ ALSO: SALMAN’S BLACKBUCK POACHING CASE HEARING POSTPONED TILL APRIL 18 Voluntary Winding Up. Voluntary winding up of a company is carried out by either passing a special resolution regarding such winding up, or by an ordinary resolution, when the time period under Articles of Association has expired, or the purpose of its constitution is served.

Winding up is a process in which the existence of a company is brought to an end, where assets of a company are collected and realised. The proceeds collected are used to discharge the company’s debts and liabilities and the remaining balance (if any) will be is distributed amongst the contributories according to their entitlement.

Role of Liquidator in winding up of company Liquidator: These are the persons appointed by the shareholders or unsecured creditors, or on a court order, to manage the winding up of a firm by selling off its assets. Most countries require a suitably qualified liquidator. On appointment, the.

Effects of voluntary winding-up: With the commencement of voluntary winding-up, the following situations arise (1) The company ceases to carry on its business except for the purposes of beneficial winding-up of such business (Section 487).

In compulsory winding up, a creditor asks the High Court to wind up the affairs of an insolvent limited company.This legal process ends with the company's removal from the Companies House register - effectively ceasing to exist. Once the order has been made the High Court appoints the Official Receiver (OR) as liquidator.

Winding up a Company: Process and Time-frame. A creditor such as HMRC, the bank or a supplier can petition the court to wind up a company if it believes the company is unable to pay its debts.

A winding up petition is the beginning of a very serious process, so if you believe you might be subject to one, seek expert financial advice straight away. 3 ways to find out if a winding up petition has been issued. If you are served with a winding up petition, you will know first-hand that one has been issued. However, creditors struggling.

Solvent companies - Informal winding up By contrast, if the company is solvent, the business owners may undertake an informal winding up, and ask HMRC to apply Extra Statutory Concession C16. This concession allows a company’s dissolution under Companies Act 1985, sections 652 and 652A (or any comparative provisions) to be treated as a formal.