Procedure for liquidating a company Free rooms chat sites
The Court may allow the disposal of property for continuation of business or in the ordinary course of business, which may be beneficial not only to the company but also to the unsecured creditors.
For example, sale of assets at full market value may also be validated if the transaction does not involve dissipation of the company's assets.
The directors of the Company are required to file a declaration of solvency.
Creditors' voluntary winding up If the company is not able to meet its liabilities, the company can convene a meeting with its creditors to consider its proposal for a voluntary winding up of the company.
(500) Company in the general meeting [in which resolution for winding up is passed], and the creditors in their meeting, appoint liquidator.
They may either agree on one liquidator, or if two names are suggested, then liquidator appointed by creditor shall act.
50) if a company's creditor, who is owed more than S,000, has served a demand for the sum owing at the registered office of the company, and the company has not paid this sum for three weeks thereafter.
The common grounds for a company to be wound up by the Court include: The company is deemed unable to pay its debts under section 254(2)(a) of the Companies Act (Cap.The proceedings so collected shall be utilised to pay off the creditors in equal proportion.Thereafter any money or property left may be distributed among members according to their rights and interests in the company.(502)In case, the winding up procedure, takes more than one year, then he will have to call a general meeting, and meeting of creditors, at the end of each year, and he shall present, a complete account of the procedure, and the status / position of liquidation (505).If from the report, official liquidator comes to the conclusion, that affairs of the company are not being carried in manner prejudicial to the interest of its members or public, then the company shall be deemed to be dissolved, from the date of report to the court.