Answer Posted / naman
Under Companies Act, liquidation of a company facing
financial distress can be accomplished via two modes:
voluntary liquidation by creditors or involuntary
liquidation by court. In the first and the more efficient
case of voluntary liquidation, shareholders vote for
liquidation and hand over control of the liquidation process
to secured creditors, who then hire a private or an official
liquidator to oversee the asset sales and distribution of
proceeds. In the second case, a creditor with a minimal
amount of Rs. 500 of unpaid and undisputed debt, after
giving three weeks’ notice to the debtor, can petition the
court for involuntary liquidation, in which case, the court
will determine the validity of the claim and the
reasonableness of the petition before ordering liquidation.
However, the court’s actions are purely discretionary and
“the court may refuse to hold the company insolvent on other
considerations including that of public interest”
| Is This Answer Correct ? | 11 Yes | 4 No |
Post New Answer View All Answers
If you could change three laws which ones would they be?
how long does it take to release the gratuity,after we quit the job?
You will be in a position that is the focus of community attention.What are the necessary characteristics to maintain the integrity of our office?
How do you think the House of Lords should be reformed?
what is difference between past consideration in requirements of consideration and past voluntary services in no consideration no contract.i have little confusion explain the difference with example
Dear sir. My name is Long Nguyen and i am reached at the ago of 18 years old. My dad is 66 and i working while earning retirement benefit. Later, i opened a new account and the SSR sent checks to me. But at the same time, my dad received a letter " retirement, survivors and disability insurance," to return money since i was 17 years old. he already sent it back. But we didn't know what was the decision.i still keep continue to earn money until 19. please answer to us , please
which perquisite is exempted from tax ?
What is the difference between a barrister and a solicitor?
Help, what is a district court administrator's role and responsibility?
Who has the power to write and change laws?
will you consider yourself to be a patient person?
What is the last date of TDS deposition of the payament of 31- 03-2008 & 31-03-2009
what is the meaning of grivance
Define 'at fault'.
What have you done during your vacations?
