Where a voluntary liquidation proceeds as a creditors' voluntary liquidation, a liquidation committee may be appointed. In business terms this will mean liquidating a company as the only option and then resuming under a different name with the same customers, clients and suppliers. This process includes drafting and filing dissolution paperwork, complying with state and federal tax law and closing out all business accounts. By special resolution: If the company resolves by a special resolution that the company is wound up, the company then will be put to an end. An order will not generally be made if the purpose of the application is to enforce payment of a debt which is bona fide disputed.
Search wound up and thousands of other words in English definition and synonym dictionary from Reverso. When a company has passed resolution for voluntary winding up, the court may its own motion or on the application of any person, makes an order that voluntary wining up shall continue, if company is no more able to pay its debts. You should contact a lawyer licensed in your jurisdiction for advice on specific legal problems. The company may be wound up voluntarily by passing a resolution in the general meeting. Liquidation is also sometimes referred to as winding-up or , although dissolution technically refers to the last stage of liquidation. The process of liquidation also arises when , an or in a responsible for collecting and safeguarding , determines the final computation or ascertainment of the duties or drawback accruing on an entry. Let us know if you have suggestions to improve this entry.
There are cited in this article, which can be found at the bottom of the page. Shareholders or partners may trigger a voluntary winding up. Once the company has decided to move towards dissolution, it is important to begin the process of and. When a company has passed resolution for voluntary winding up, the court may of its own motion or on the application of any person entitled to apply to the court for winding up of a company, makes an order that voluntary winding up shall continue but subject creditors, contributions or other to apply to the court and generally on such terms and conditions as the court thinks just. When liquidation is complete, the liquidator calls the final meeting of the company and the creditors and places before them the full account.
In that case, the general meeting will appoint the liquidator s. The company is then dissolved. Where a voluntary winding-up of a company has begun, a compulsory liquidation order is still possible, but the petitioning contributory would need to satisfy the court that a voluntary liquidation would prejudice the contributors. Property which is held by the company on for third parties will not form part of the company's assets available to pay creditors. However, some states only require two-thirds of shareholders to approve dissolution in order for dissolution to occur. The voluntary winding up of the company by the members themselves may take place under the following circumstances. Noun the windup of the negotiations He went into the windup, then threw the pitch.
For the process of a solid literally becoming a liquid, see. Members Voluntary winding up: In a case of members voluntary winding up, the directors declare in the meeting of shareholders that the company is fit for liquidation. Voluntary winding up of a company. Final meeting and dissolution: When the affairs of the company are finally wound up, the liquidator shall call a general meeting of the shareholders and place before them the full accounts of the company and send its copy to the registrar within one week of the meeting. Your email address will not be published. The liquidator must determine the company's title to property in its possession.
Winding up, or liquidation, is sometimes part of a proceeding. The company shall be dissolved on the expiration of three months on the receipts of the copy of account and other relevant documents from the liquidators. The meeting then passes a resolution for voluntary winding up and appoints liquidators themselves. But he made amends by chewing like one that was just wound up. A public company may be wound up if its members are reduced below seven. The company is no more able to do business.
According to the companies ordinance 1984 a company can be wound up in the following three ways or you can say these are the types of winding up of a company. Separate meetings of creditors and contributories may decide to nominate a person for the appointment of a liquidator and possibly of a supervisory liquidation committee. In such cases an application is made to the registrar of companies, who may strike off the company if there is reasonable cause to believe that the company is not carrying on business or has been wound-up and, after enquiry, no case is shown why the company should not be struck off. To take the wind out of one's sails in the figurative sense by 1883 is an image from sailing, where a ship without wind can make no progress. Law is our Passion This entry about Wound Up has been published under the terms of the Creative Commons Attribution 3. Claimants with non-monetary claims against the company may be able to enforce their rights against the company.
If the company goes into liquidation, the court of law appoints a liquidator for the liquidation. Each state has different requirements for dissolving a company and in order to legally end your business and limit your legal liability you must comply with all legal requirements. The liquidator does not take charge of his office unless the remuneration is fixed. Sometimes market situations may paint a bleak outlook for a particular business. He wound up his discourse with some theatrical talk about disinterestedness. Persons participating in the management of the 'phoenix' company may also be held personally liable for the debts of the company under §217 of the Insolvency Act unless the Court approval has been granted.