DISSOLVING A COMPANYDISSOLVING A COMPANY

Newer Post Older PostHome

Subscribe to: Post Comments (Atom)

Wednesday, 30 April 2014

Posted by Robert I. Carter at 04:02

Labels: liquidation, voluntary insolvency, voluntary liquidation

Compulsory Liquidation Of The CompanyCHERYL BELL

Compulsory liquidation generally occurs when a company is wound up by an order of the

High Court. A compulsory liquidation is also known as court liquidation in many regions

because the resolution is passed from the court. A winding-up petition is presented in the

High Court, usually by a creditor with the statement stating that the company owes a

certain amount of money and the company is unable to pay that amount in a certain

interval of time. A winding-up order can still be made even if the company has left with no

assets or disputes the amount claimed. Any controversial debts should be resolved with

the creditor before the winding up order is made because once the order is made the

effect of the law against compulsory liquidation is much severe as that of other law.

The Official Receiver who is a civil servant and an officer of the High Court is handling the

early stage of the Compulsory liquidation. The OR will inform the company’s creditors

and shareholders that the company is being wound up. If there are any significant assets,

then an insolvency practitioner may be appointed as a post of liquidator in the place of

Official Receivers either by creditors or shareholders or by the Department of Enterprises.

 The role of the liquidator is to realise the company’s assets, recompense the charges and

charges which are rising from the liquidation and share out any remaining assets to the

creditors and shareholders. Whenever a compulsory liquidation for winding up is made by

the order of the court then the OR will be notified by the court, which will send notice to the

Director of the company. Sometimes the OR will need to interview the Director of the

company at once for further investigation of the company. The interview happens only in

one condition if there are urgent matters to be dealt with relating to the company’s

business, employees or any assets.

The winding up order proceedings

can be stopped if:

The court can cancel a winding up

order, if the company had applied for

the stay order and during that interval

of time if the court did not have all the

appropriate facts during the creation

of winding up order then in that case

the winding up order can be

discarded by the court. If the

company is in a position to take some

instant action, then the company

should seek some advice from the

professional advisor within the

limited interval of time given by the

court. The company can seek this

advice either from the lawyer, or from a qualified accountant or either from an authorized

liquidation practitioner. The company should also inform the OR and must continue to co-

operate with the OR in the meantime.

Once the winding up process is complete, the company will cease to exist. On release, the

OR/IP sends a notice to the Registrar of the Company and the company will get dissolved

three months later.

If there are some debts which are to be paid to the employees then they must consult the

OR before the winding up process because once the completion of winding up process is

done the company will remain with nothing. And once the company is ceased they will be

no longer its employees.

Great Site!!

The Adobe Flash Player or an HTML5 supported browser is required for video

playback.

Get the latest Flash Player

Learn more about upgrading to an HTML5 browser

+4 Recommend this on Google

Enter your comment...

Comment as: Google Account

PublishPublish PreviewPreview

No comments:

Post a Comment

Robert I. Carter

Follow 0

View my complete profile

About Me

▼  2014 (5)

►  May (2)

▼  April (3)

Compulsory Liquidation Of The Company

RECEIVERSHIP-OBTAINING EXPERTSERVICES

GUIDELINES ON DISSOLVING ACOMPANY

Blog Archive

Watermark template. Powered by Blogger.

Share 4 More Next Blog» Create Blog Sign In

Generated with www.html-to-pdf.net Page 1 / 2

DISSOLVING A COMPANYDISSOLVING A COMPANY

Newer Post Older PostHome

Subscribe to: Post Comments (Atom)

Wednesday, 30 April 2014

Posted by Robert I. Carter at 04:02

Labels: liquidation, voluntary insolvency, voluntary liquidation

Compulsory Liquidation Of The CompanyCHERYL BELL

Compulsory liquidation generally occurs when a company is wound up by an order of the

High Court. A compulsory liquidation is also known as court liquidation in many regions

because the resolution is passed from the court. A winding-up petition is presented in the

High Court, usually by a creditor with the statement stating that the company owes a

certain amount of money and the company is unable to pay that amount in a certain

interval of time. A winding-up order can still be made even if the company has left with no

assets or disputes the amount claimed. Any controversial debts should be resolved with

the creditor before the winding up order is made because once the order is made the

effect of the law against compulsory liquidation is much severe as that of other law.

The Official Receiver who is a civil servant and an officer of the High Court is handling the

early stage of the Compulsory liquidation. The OR will inform the company’s creditors

and shareholders that the company is being wound up. If there are any significant assets,

then an insolvency practitioner may be appointed as a post of liquidator in the place of

Official Receivers either by creditors or shareholders or by the Department of Enterprises.

 The role of the liquidator is to realise the company’s assets, recompense the charges and

charges which are rising from the liquidation and share out any remaining assets to the

creditors and shareholders. Whenever a compulsory liquidation for winding up is made by

the order of the court then the OR will be notified by the court, which will send notice to the

Director of the company. Sometimes the OR will need to interview the Director of the

company at once for further investigation of the company. The interview happens only in

one condition if there are urgent matters to be dealt with relating to the company’s

business, employees or any assets.

The winding up order proceedings

can be stopped if:

The court can cancel a winding up

order, if the company had applied for

the stay order and during that interval

of time if the court did not have all the

appropriate facts during the creation

of winding up order then in that case

the winding up order can be

discarded by the court. If the

company is in a position to take some

instant action, then the company

should seek some advice from the

professional advisor within the

limited interval of time given by the

court. The company can seek this

advice either from the lawyer, or from a qualified accountant or either from an authorized

liquidation practitioner. The company should also inform the OR and must continue to co-

operate with the OR in the meantime.

Once the winding up process is complete, the company will cease to exist. On release, the

OR/IP sends a notice to the Registrar of the Company and the company will get dissolved

three months later.

If there are some debts which are to be paid to the employees then they must consult the

OR before the winding up process because once the completion of winding up process is

done the company will remain with nothing. And once the company is ceased they will be

no longer its employees.

Great Site!!

The Adobe Flash Player or an HTML5 supported browser is required for video

playback.

Get the latest Flash Player

Learn more about upgrading to an HTML5 browser

+4 Recommend this on Google

Enter your comment...

Comment as: Google Account

PublishPublish PreviewPreview

No comments:

Post a Comment

Robert I. Carter

Follow 0

View my complete profile

About Me

▼  2014 (5)

►  May (2)

▼  April (3)

Compulsory Liquidation Of The Company

RECEIVERSHIP-OBTAINING EXPERTSERVICES

GUIDELINES ON DISSOLVING ACOMPANY

Blog Archive

Watermark template. Powered by Blogger.

Share 4 More Next Blog» Create Blog Sign In

Generated with www.html-to-pdf.net Page 2 / 2