Camporn portal - Eg liquidating co

by  |  18-Feb-2016 03:39

The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.

The court may appoint an official receiver, and one or more liquidators, and has general powers to enable rights and liabilities of claimants and contributories to be settled.

eg liquidating co-21

Once liquidation commences (which depends upon applicable law, but will generally be when the petition was originally presented, and not when the court makes the order), dispositions of the company's property are generally void, and litigation involving the company is generally restrained.

Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.

It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, or of an implied obligation to participate in management.

An order might be made where the majority shareholders deprive the minority of their right to appoint and remove their own director.

In law, liquidation refers to the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed.

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