This document provides a summary of the voluntary administration process for unsecured creditors of companies in financial difficulty. Key points include:
- A voluntary administrator takes control of the company to try and resolve its financial issues, typically through a deed of company arrangement or winding up the business.
- Creditors decide the company's future at a second meeting, usually 5 weeks after appointment, where they vote on options recommended by the administrator.
- The administrator investigates the company's affairs and reports to creditors on alternatives like ending administration, approving a deed, or liquidation. This report informs creditors' vote.
- Creditors can participate in meetings to provide direction and replace the administrator if desired. Voting entitlements
This information sheet gives general information for shareholders on the three most common forms of external administration (liquidation, voluntary administration and receivership).
If a company is in financial difficulty, its shareholders, creditors or the court can put the company into
liquidation.
This information sheet provides general information for unsecured creditors of companies in
liquidation.
This is a brief explanation of some of the te
rms you may come across in company insolvency
proceedings. Please note that this glossary is for ge
neral guidance only. Many of the terms have a
specific technical meaning in certain c
ontexts that may not be covered here.
The document discusses the legal issues surrounding corporate liquidation. It provides an overview of the different reasons a company may enter liquidation, either voluntarily through shareholder or director resolution, or involuntarily through a court order obtained by creditors. It also outlines the roles and responsibilities of directors, shareholders, secured and unsecured creditors during the liquidation process. Key points covered include tests for insolvency, director liability for insolvent trading, and the order of creditor payment during liquidation. The document is relevant as it analyzes the legal implications of the liquidation of Best Dressed Homes Ltd.
The document discusses various aspects of managing corporations, including:
- Corporate objectives, powers, and the roles of boards of directors and officers
- Directors' and officers' duties to act in the corporation's best interests and avoid conflicts of interest
- Protection from liability provided by the business judgment rule for decisions made with care, in good faith, and without conflicts
- Potential liability of directors and officers for negligence, torts, crimes, and usurping corporate opportunities
- Defenses against hostile takeovers and protections for minority shareholders
This document discusses types of winding up, the differences between compulsory and voluntary winding up, procedures for members' voluntary liquidation and creditors' voluntary liquidation, powers and duties of a liquidator, and priorities for distributing funds in winding up. It provides details on:
- Grounds and processes for compulsory (court-ordered) winding up versus voluntary winding up initiated by shareholders or creditors.
- Requirements and steps for members' voluntary liquidation when a company is solvent, and creditors' voluntary liquidation when insolvent.
- Acceptance of a liquidator's authority, their main functions of taking control of assets and distributing proceeds, and who can be appointed.
- Evidence and priorities for
Winding up is the process of dissolving a company where its assets are collected and debts paid off, with any surplus distributed to members. There are three modes - compulsory, voluntary, and under court supervision. Compulsory winding up occurs via a court order, while voluntary winding up is by member or creditor resolution. An official liquidator is appointed to oversee the process, taking assets, convening meetings, and submitting reports. The order of payment is secured then unsecured creditors, preferential payments, members. Dissolution occurs via a court order when winding up is complete.
The document discusses reforms to Malaysia's corporate insolvency regime. It notes international trends moving towards corporate rescue mechanisms rather than just liquidation. The current regime focuses on liquidation and lacks rescue mechanisms. It examines approaches taken in other countries and whether Malaysia should have a single omnibus insolvency act. Key areas for reform include commencement/termination of winding up processes, liquidator powers and duties, qualifications, treatment of secured creditors, and voidable transactions. The review aims to balance facilitation of winding up with protecting creditor/shareholder rights while establishing rescue mechanisms.
This information sheet gives general information for shareholders on the three most common forms of external administration (liquidation, voluntary administration and receivership).
If a company is in financial difficulty, its shareholders, creditors or the court can put the company into
liquidation.
This information sheet provides general information for unsecured creditors of companies in
liquidation.
This is a brief explanation of some of the te
rms you may come across in company insolvency
proceedings. Please note that this glossary is for ge
neral guidance only. Many of the terms have a
specific technical meaning in certain c
ontexts that may not be covered here.
The document discusses the legal issues surrounding corporate liquidation. It provides an overview of the different reasons a company may enter liquidation, either voluntarily through shareholder or director resolution, or involuntarily through a court order obtained by creditors. It also outlines the roles and responsibilities of directors, shareholders, secured and unsecured creditors during the liquidation process. Key points covered include tests for insolvency, director liability for insolvent trading, and the order of creditor payment during liquidation. The document is relevant as it analyzes the legal implications of the liquidation of Best Dressed Homes Ltd.
The document discusses various aspects of managing corporations, including:
- Corporate objectives, powers, and the roles of boards of directors and officers
- Directors' and officers' duties to act in the corporation's best interests and avoid conflicts of interest
- Protection from liability provided by the business judgment rule for decisions made with care, in good faith, and without conflicts
- Potential liability of directors and officers for negligence, torts, crimes, and usurping corporate opportunities
- Defenses against hostile takeovers and protections for minority shareholders
This document discusses types of winding up, the differences between compulsory and voluntary winding up, procedures for members' voluntary liquidation and creditors' voluntary liquidation, powers and duties of a liquidator, and priorities for distributing funds in winding up. It provides details on:
- Grounds and processes for compulsory (court-ordered) winding up versus voluntary winding up initiated by shareholders or creditors.
- Requirements and steps for members' voluntary liquidation when a company is solvent, and creditors' voluntary liquidation when insolvent.
- Acceptance of a liquidator's authority, their main functions of taking control of assets and distributing proceeds, and who can be appointed.
- Evidence and priorities for
Winding up is the process of dissolving a company where its assets are collected and debts paid off, with any surplus distributed to members. There are three modes - compulsory, voluntary, and under court supervision. Compulsory winding up occurs via a court order, while voluntary winding up is by member or creditor resolution. An official liquidator is appointed to oversee the process, taking assets, convening meetings, and submitting reports. The order of payment is secured then unsecured creditors, preferential payments, members. Dissolution occurs via a court order when winding up is complete.
The document discusses reforms to Malaysia's corporate insolvency regime. It notes international trends moving towards corporate rescue mechanisms rather than just liquidation. The current regime focuses on liquidation and lacks rescue mechanisms. It examines approaches taken in other countries and whether Malaysia should have a single omnibus insolvency act. Key areas for reform include commencement/termination of winding up processes, liquidator powers and duties, qualifications, treatment of secured creditors, and voidable transactions. The review aims to balance facilitation of winding up with protecting creditor/shareholder rights while establishing rescue mechanisms.
This presentation gives an overview of the laws and regulations regarding insolvency, liquidation and winding up in Nepal
PLEASE HIT LIKE IF IT'S HELPFUL! :D
5 things every business owner should know about the lawYuying Deng
A presentation specifically for entrepreneurs. Find out what a company is, how it is structured, what are a shareholder's rights, a director's rights and obligations and as a bonus, how to skim a contract quickly.
The document provides information about winding up procedures for companies in India. It discusses voluntary winding up initiated by a company's shareholders and winding up initiated by the tribunal on various grounds. Key points include: (1) Winding up is the process of settling a company's debts and distributing remaining assets to shareholders; (2) The Companies Act of 2013 governs winding up procedures; (3) Grounds for tribunal winding up include inability to pay debts or acting against national interests. Creditors, shareholders, or government entities can file winding up petitions. The Insolvency and Bankruptcy Code of 2016 introduced changes to winding up procedures.
This document discusses the rule of Foss v Harbottle and protections for minority shareholders. It summarizes that under Foss v Harbottle, the majority shareholders have control over company decisions and minority shareholders can be oppressed. Exceptions to this rule include illegal acts, transactions requiring special majorities, or acts infringing on shareholder rights or involving fraud. The document then provides details on the Foss v Harbottle case facts and principles, exceptions to the rule, why minority shareholders may seek remedies, and the types of legal actions available to minority shareholders including personal, representative, and derivative actions.
This document provides an overview of company law in India. It begins with defining key terms like "company" and outlining the history and evolution of company law in India. It then discusses the key characteristics of a company under Indian law, including separate legal identity, limited liability, perpetual succession, and more. The document also covers the different types of companies recognized in India like public, private, government, holding and subsidiary companies. It concludes with discussing the process of registering and incorporating a company in India.
BUSINESS RESCUE & OPPORTUNITIES FOR DISTRESSED FUNDS IN SOUTH AFRICAWerksmans Attorneys
This document provides an overview of business rescue in South Africa, including key definitions, opportunities for distressed funds, and considerations for directors. It notes that business rescue aims to facilitate rehabilitation of financially distressed companies through a moratorium and developing a plan to restructure the company's affairs and maximize the chance of continued existence. The document outlines warning signs of financial distress directors should watch for, such as ongoing losses, inability to adapt to market changes, and deteriorating relationships with financiers. It also provides a checklist for directors to assess looming insolvency and consider initiating business rescue proceedings.
Business rescue: Saving distressed companies (Director Eric Levenstein and Se...Werksmans Attorneys
The document provides an overview of business rescue in South Africa, which allows financially distressed companies to restructure under supervision in order to avoid liquidation. It discusses the origins and key concepts of business rescue proceedings, including the moratorium on legal action that provides breathing space. Statistics on business rescues from 2011-2014 are presented. Important features like post-commencement financing, the ranking of claims, and the effect on contracts, directors and creditors are analyzed.
1. The document outlines several post-incorporation matters that new corporations must address, including establishing separate bank accounts, conducting business only in the corporate name, holding regular board and shareholder meetings, and filing annual reports with the state.
2. Corporations must obtain an Employer Identification Number from the IRS and elect a tax year for filing federal and state tax returns.
3. Directors have fiduciary duties to act with reasonable care and loyalty to the corporation and shareholders. Major transactions require board approval and should be documented in corporate minutes.
The document discusses ways to minimize shareholder disputes when initially establishing a partnership. It recommends addressing important issues like the number of legal representatives and company seals, conditions for company executives, and provisions for the sale of shares in disputes. Mediation and arbitration clauses are also suggested to help solve disputes before escalation and allow for a faster, confidential resolution compared to courts.
The document discusses prevention of mismanagement in companies under the Companies Act of 1956. It describes how the majority rule of a company can lead to oppression of minorities, and the process by which minorities can petition the tribunal for relief. It also discusses what constitutes mismanagement, the powers of the tribunal to investigate companies and appoint new directors, and the process for approved compromises and arrangements between a company and its creditors.
The group presented on the topic of insolvency law in India. Some key points:
1) Insolvency occurs when an individual or organization cannot meet their financial obligations and pay debts as they are due. Bankruptcy is a legal process that occurs when a court declares an insolvent party is unable to pay debts.
2) The two main statutes governing insolvency law in India are the Presidency Towns Insolvency Act and the Insolvency Act, with jurisdiction falling to High Courts and district courts respectively.
3) Upon a declaration of insolvency, all the insolvent's properties are vested with the official assignee to be realized and distributed among creditors
This document defines a company and outlines its key characteristics such as being a voluntary association, having an independent legal entity status, limited liability for members, use of a common seal, transferable shares, and perpetual existence. It also describes the different types of companies (statutory, government, registered) and classes of shares (ordinary, preferred, deferred, preference, cumulative, participating, guaranteed). The formation process of a company is explained including the documents required such as the memorandum of association, articles of association, statement of capital, and director consents.
Rule in Foss vs Harbottle ( Rights of Minority Shareholder)Gokul Krishnan r
The rule in Foss v Harbottle establishes the principle that shareholders cannot file a derivative suit on behalf of the company for wrongs done to the company if the wrongdoers constitute a majority of shareholders. There are exceptions if the wrongful acts are ultra vires, involve fraud against minority shareholders, require a special shareholder resolution, or if the wrongdoers control the company. Indian law also establishes protections for minority shareholders through provisions for class rights, investigations, schemes of arrangement, oppression claims, and class action suits.
This document discusses the dissolution and winding up of companies. Dissolution is the final stage of liquidation where a company's assets and property are redistributed. Companies may be dissolved for reasons like expiration of term, shareholder resolution, merger/division, or license revocation. Winding up is the process where a company's existence ends, assets are collected and used to pay debts, and any remaining balance is distributed. There are two modes of winding up - voluntary and by court. Voluntary winding up can be members' or creditors' based on solvency. Winding up by court is compulsory and begins with a petition to the court.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
Shareholder agreement questionnaire final 060112Cummings
This document is a questionnaire from a law firm regarding issues to consider when drafting a shareholders' agreement. It contains over 30 questions across topics like share ownership and transfer restrictions, director appointments and meetings, shareholder consent requirements, non-competition clauses, valuation of departing shareholders' shares, and provisions for deadlock resolution. The law firm notes that not all questions will apply to every situation, and completing the questionnaire will help identify relevant issues to address in the shareholders' agreement tailored to the clients' individual circumstances.
The document discusses the winding up process of a company in India. There are two types of winding up - compulsory and voluntary. Compulsory winding up is ordered by the National Company Law Tribunal for reasons such as inability to pay debts or it being just and equitable. Voluntary winding up can be members' voluntary winding up if the company is solvent, or creditors' voluntary winding up if it proposes to wind up. The winding up process is conducted by an administrator called a liquidator, who realizes the company's assets and pays off debts. Winding up brings an end to the company's legal personality while dissolution removes it from the register of companies.
This document discusses the different modes of winding up a company, including compulsory winding up, voluntary winding up, and winding up subject to court supervision. It outlines the processes for members' voluntary winding up and creditors' voluntary winding up. These include passing resolutions, appointing liquidators, and holding final meetings. The document also covers priority of payments in liquidation, listing legal charges, liquidators, expenses, preferential creditors, debenture holders, unsecured creditors, preference shareholders, and equity shareholders from first to last priority.
If a company is in financial difficulty, its shareholde
rs, creditors or the court can put the company into
liquidation.
This information sheet provides general informa
tion for employees of companies in liquidation.
Employees should also read ASIC information sheet INFO 45. for more info, visit: http://www.svpartners.com.au/uploads/197.pdf
This information sheet provides general inform
ation for unsecured creditors of companies in
receivership. For more info, visit: http://www.svpartners.com.au/
This presentation gives an overview of the laws and regulations regarding insolvency, liquidation and winding up in Nepal
PLEASE HIT LIKE IF IT'S HELPFUL! :D
5 things every business owner should know about the lawYuying Deng
A presentation specifically for entrepreneurs. Find out what a company is, how it is structured, what are a shareholder's rights, a director's rights and obligations and as a bonus, how to skim a contract quickly.
The document provides information about winding up procedures for companies in India. It discusses voluntary winding up initiated by a company's shareholders and winding up initiated by the tribunal on various grounds. Key points include: (1) Winding up is the process of settling a company's debts and distributing remaining assets to shareholders; (2) The Companies Act of 2013 governs winding up procedures; (3) Grounds for tribunal winding up include inability to pay debts or acting against national interests. Creditors, shareholders, or government entities can file winding up petitions. The Insolvency and Bankruptcy Code of 2016 introduced changes to winding up procedures.
This document discusses the rule of Foss v Harbottle and protections for minority shareholders. It summarizes that under Foss v Harbottle, the majority shareholders have control over company decisions and minority shareholders can be oppressed. Exceptions to this rule include illegal acts, transactions requiring special majorities, or acts infringing on shareholder rights or involving fraud. The document then provides details on the Foss v Harbottle case facts and principles, exceptions to the rule, why minority shareholders may seek remedies, and the types of legal actions available to minority shareholders including personal, representative, and derivative actions.
This document provides an overview of company law in India. It begins with defining key terms like "company" and outlining the history and evolution of company law in India. It then discusses the key characteristics of a company under Indian law, including separate legal identity, limited liability, perpetual succession, and more. The document also covers the different types of companies recognized in India like public, private, government, holding and subsidiary companies. It concludes with discussing the process of registering and incorporating a company in India.
BUSINESS RESCUE & OPPORTUNITIES FOR DISTRESSED FUNDS IN SOUTH AFRICAWerksmans Attorneys
This document provides an overview of business rescue in South Africa, including key definitions, opportunities for distressed funds, and considerations for directors. It notes that business rescue aims to facilitate rehabilitation of financially distressed companies through a moratorium and developing a plan to restructure the company's affairs and maximize the chance of continued existence. The document outlines warning signs of financial distress directors should watch for, such as ongoing losses, inability to adapt to market changes, and deteriorating relationships with financiers. It also provides a checklist for directors to assess looming insolvency and consider initiating business rescue proceedings.
Business rescue: Saving distressed companies (Director Eric Levenstein and Se...Werksmans Attorneys
The document provides an overview of business rescue in South Africa, which allows financially distressed companies to restructure under supervision in order to avoid liquidation. It discusses the origins and key concepts of business rescue proceedings, including the moratorium on legal action that provides breathing space. Statistics on business rescues from 2011-2014 are presented. Important features like post-commencement financing, the ranking of claims, and the effect on contracts, directors and creditors are analyzed.
1. The document outlines several post-incorporation matters that new corporations must address, including establishing separate bank accounts, conducting business only in the corporate name, holding regular board and shareholder meetings, and filing annual reports with the state.
2. Corporations must obtain an Employer Identification Number from the IRS and elect a tax year for filing federal and state tax returns.
3. Directors have fiduciary duties to act with reasonable care and loyalty to the corporation and shareholders. Major transactions require board approval and should be documented in corporate minutes.
The document discusses ways to minimize shareholder disputes when initially establishing a partnership. It recommends addressing important issues like the number of legal representatives and company seals, conditions for company executives, and provisions for the sale of shares in disputes. Mediation and arbitration clauses are also suggested to help solve disputes before escalation and allow for a faster, confidential resolution compared to courts.
The document discusses prevention of mismanagement in companies under the Companies Act of 1956. It describes how the majority rule of a company can lead to oppression of minorities, and the process by which minorities can petition the tribunal for relief. It also discusses what constitutes mismanagement, the powers of the tribunal to investigate companies and appoint new directors, and the process for approved compromises and arrangements between a company and its creditors.
The group presented on the topic of insolvency law in India. Some key points:
1) Insolvency occurs when an individual or organization cannot meet their financial obligations and pay debts as they are due. Bankruptcy is a legal process that occurs when a court declares an insolvent party is unable to pay debts.
2) The two main statutes governing insolvency law in India are the Presidency Towns Insolvency Act and the Insolvency Act, with jurisdiction falling to High Courts and district courts respectively.
3) Upon a declaration of insolvency, all the insolvent's properties are vested with the official assignee to be realized and distributed among creditors
This document defines a company and outlines its key characteristics such as being a voluntary association, having an independent legal entity status, limited liability for members, use of a common seal, transferable shares, and perpetual existence. It also describes the different types of companies (statutory, government, registered) and classes of shares (ordinary, preferred, deferred, preference, cumulative, participating, guaranteed). The formation process of a company is explained including the documents required such as the memorandum of association, articles of association, statement of capital, and director consents.
Rule in Foss vs Harbottle ( Rights of Minority Shareholder)Gokul Krishnan r
The rule in Foss v Harbottle establishes the principle that shareholders cannot file a derivative suit on behalf of the company for wrongs done to the company if the wrongdoers constitute a majority of shareholders. There are exceptions if the wrongful acts are ultra vires, involve fraud against minority shareholders, require a special shareholder resolution, or if the wrongdoers control the company. Indian law also establishes protections for minority shareholders through provisions for class rights, investigations, schemes of arrangement, oppression claims, and class action suits.
This document discusses the dissolution and winding up of companies. Dissolution is the final stage of liquidation where a company's assets and property are redistributed. Companies may be dissolved for reasons like expiration of term, shareholder resolution, merger/division, or license revocation. Winding up is the process where a company's existence ends, assets are collected and used to pay debts, and any remaining balance is distributed. There are two modes of winding up - voluntary and by court. Voluntary winding up can be members' or creditors' based on solvency. Winding up by court is compulsory and begins with a petition to the court.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
Shareholder agreement questionnaire final 060112Cummings
This document is a questionnaire from a law firm regarding issues to consider when drafting a shareholders' agreement. It contains over 30 questions across topics like share ownership and transfer restrictions, director appointments and meetings, shareholder consent requirements, non-competition clauses, valuation of departing shareholders' shares, and provisions for deadlock resolution. The law firm notes that not all questions will apply to every situation, and completing the questionnaire will help identify relevant issues to address in the shareholders' agreement tailored to the clients' individual circumstances.
The document discusses the winding up process of a company in India. There are two types of winding up - compulsory and voluntary. Compulsory winding up is ordered by the National Company Law Tribunal for reasons such as inability to pay debts or it being just and equitable. Voluntary winding up can be members' voluntary winding up if the company is solvent, or creditors' voluntary winding up if it proposes to wind up. The winding up process is conducted by an administrator called a liquidator, who realizes the company's assets and pays off debts. Winding up brings an end to the company's legal personality while dissolution removes it from the register of companies.
This document discusses the different modes of winding up a company, including compulsory winding up, voluntary winding up, and winding up subject to court supervision. It outlines the processes for members' voluntary winding up and creditors' voluntary winding up. These include passing resolutions, appointing liquidators, and holding final meetings. The document also covers priority of payments in liquidation, listing legal charges, liquidators, expenses, preferential creditors, debenture holders, unsecured creditors, preference shareholders, and equity shareholders from first to last priority.
If a company is in financial difficulty, its shareholde
rs, creditors or the court can put the company into
liquidation.
This information sheet provides general informa
tion for employees of companies in liquidation.
Employees should also read ASIC information sheet INFO 45. for more info, visit: http://www.svpartners.com.au/uploads/197.pdf
This information sheet provides general inform
ation for unsecured creditors of companies in
receivership. For more info, visit: http://www.svpartners.com.au/
Independence of external administratorsSV Partners
If a company is insolvent or in financial difficulty,
it can be put into external administration. Here are the three
most common forms of external administration.
Winding up/liquidation represents the last stage in company’s life by which a company is dissolved. After winding up, the company is struck off from the Companies Register at Companies House. The company simply stops doing any business and employing staff.
What creditors should know about UAE company liquidation?AhmedTalaat127
A business can have different kinds of creditors: secured and unsecured. Both types of creditors have rights when a company goes under company liquidation in UAE. For secured creditors, they enjoy a defined hierarchy in terms of repayment. This means they are allowed in getting repaid before other creditor groups.
There’s a general assumption that a company’s unsecured creditors only have a few rights when a company is liquidated. But, unsecured creditors actually have the right in influencing proceedings. Unsecured creditors are also entitled in being fully informed with regards to a company’s liquidation.
Liquidation is winding up of an entity and the selling of its assets to distribute them, depending on the factor whether the company is solvent or insolvent.
Liquidation is the process of dissolving a company and distributing its assets to pay off debts or return funds to shareholders. It involves canceling business licenses, paying off creditors, selling off assets, and distributing any remaining funds according to ownership stakes. The liquidation process in the UAE requires appointing a liquidator, canceling employee visas, publishing liquidation notices, finalizing audits and obtaining clearance letters from relevant authorities. Completing the entire liquidation process takes around three months.
This information sheet provides general information for employees of companies in receivership. Employees should also read ASIC’s information sheet INFO 54 Receivership: a guide for creditors. For more info, visit: http://www.svpartners.com.au
The document discusses creditors voluntary liquidation (CVL), a process where insolvent company directors can close a company without court involvement. It describes the tests for insolvency, options if continuing to trade, and the formal CVL procedure which involves board and shareholder meetings to appoint a liquidator who will manage the orderly winding up of the company.
The document discusses the process of liquidating companies. It states that liquidation is a legal term that refers to the procedure through which a company's affairs are wound up according to law. An administrator called a liquidator is appointed to take control of the company, collect its assets, pay off debts, and distribute any surplus assets to members. The document also discusses the different types of liquidations including voluntary and compulsory liquidation, as well as the roles of members, creditors, and courts in the liquidation process.
CORPORATE INSOLVENCY:
COMPANIES ACT 2016
Business is a combination of war and sport!!
- Andre Maurois
2
2
“
INSOLVENCY –
Insolvency – what does it mean?
Cessation of companies
New Corporate rescue mechanisms
Insolvent companies – what options are available?
1
2
3
4
Insolvency is inability to pay debts.
When a company is unable to pay its debts, it may be subject to various insolvency proceedings.
The aim of insolvency approaches is for the insolvency administrator to take over the affairs of the debtor company in order to settle the debts of the creditors and distribute the insolvency proceeds to the rightful persons in accordance with law and equity.
Receivership
Compromise & Arrangement
Reconstruction and amalgamation of companies
Insolvency : Alternative Mechanisms
Corporate recovery plans
Cessation of business
Additional measures –introduced in CA2016
The aim is to help financially distressed companies to allow them to restructure their debts, to remain as a going concern and to avoid winding up.
Corporate Voluntary Arrangement (CVA)
Judicial Management (JM)
Winding up
Members’ voluntary winding up
Creditors’ voluntary winding up
Winding up by Court (compulsory)
Striking off
RECEIVERSHIP
Let’s start by briefly discussing on how lender’s interests are protected
6
1
Receivership
“A company going into receivership would mean that its affairs are being managed by a ‘receiver’ or a ‘receiver and manager’. The company is not in liquidation except that the directors will have to surrender their rights to run the company’s business to the ‘receiver’ or ‘receiver and manager’ as a going concern”.
7
INTRODUCTION TO RECEIVERSHIP
When a financial institution / debenture holders provides a financial loan or facility (or other creditors provide credits) to a company, the financial institution would want to have some form of security to recover the debt.
One form of security is through a charge on the immovable property of the company. The charge can take a form of fixed charge or floating charge.
The fixed and floating charge will commonly be set out in the debenture. The terms of the debenture will commonly allow for the appointment of a ‘receiver’ or ‘receiver and manager’ and has duty to realise the charged assets and utilise the proceeds to repay the financial institution.
8
RECEIVERSHIP
A company goes into receivership when receiver is appointed by the debenture holder (or trustee) under a power contained in debenture or trust deed, or Court upon application.
The appointment by debenture holder is normally made in the event of a breach by the co of the conditions attached to the debentures.
The powers of the receiver under this form of insolvency administration are usually specified in a contractual agreement between the secured creditor and the company.
9
RECEIVERSHIP
A receivers’ task is to take possession of assets cover ...
The document discusses the borrowing powers and restrictions on borrowing for companies under Indian law. It provides details on:
- Companies have implied power to borrow, while non-trading companies must include this power in their memorandum.
- The key restrictions on borrowing include limits based on paid-up capital and reserves, and requirements for shareholder authorization for amounts over these limits.
- Borrowings must be registered within 30 days for charges over specific assets like property or within 300 days with a late fee. Lenders can also register in some cases. The registrar issues certificates of registration and satisfaction.
This document provides an overview of the Insolvency and Bankruptcy Code 2016 in India. It defines key terms like insolvency, bankruptcy, financial creditor and operational creditor. It outlines the objectives of the code to have a uniform law and faster resolution process. It describes the insolvency resolution process for companies/LLPs which includes a moratorium, creditors committee and resolution plan within 180 days. If this fails, the process is liquidation. It also describes the process for individuals/partnerships. The code sets up institutions like the Insolvency and Bankruptcy Board, NCLT and Resolution Professionals to handle insolvency cases. It impacts other existing laws dealing with insolvency
Insolvent Liquidation - When and How it is Used #020K2Partners
The document discusses insolvent liquidation, which is a formal process to close a company that is insolvent and unable to pay its debts. It describes the tests used to determine if a company is insolvent, including if it fails to pay debts or its liabilities exceed its assets. The document outlines the voluntary and compulsory liquidation processes, including the roles of directors, shareholders, creditors and liquidators. It also notes that insolvency practitioners work for creditors rather than the company.
Financial distress and your safety net during COVID-19Redchip
Temporary changes to insolvency laws mean businesses have a safety net so they can resume normal operations once the crisis has passed. This includes an increase to the statutory demand limit (to $20,000), and extended protections for directors against personal liability for trading whilst insolvent.
This safety net, however, is due to expire on 24 September 2020 and businesses can then expect sudden and aggressive debt recovery measures from creditors including the ATO.
Please join our webinar with insolvency experts Robert Champney and
Rebecca Forsyth who will discuss with you:
Changes to occur from 25 September - statutory demands, bankruptcy notices, and obligations as a director;
Debt recovery options available to your clients to improve cash flow; and
“Red flags” that determine financial distress, what options are available to restructure, and the need for proactive conversations with your client and legal advisors
To put it simply, winding up refers to a process that dissolves a company.
This method of company closure involves the termination of business operations.
During this process, all assets belonging to a company are sold to pay off its debt.
This information sheet gives general informati
on for creditors on the approval of an external
administrator’s fees in a liquidation of an insolven
t company, voluntary administration or deed of
company arrangement.
The Corporate Insolvency Handbook provides an overview of the options available to both companies (in distress) and creditors – liquidation and voluntary administration, as well as the different types of corporate insolvency and voluntary administration.
This document discusses the winding up process for companies in India. It defines winding up as the process of dissolving a company by closing down its business, selling off assets, paying creditors, and distributing any remaining assets to members. There are three main types of winding up: compulsory (by court order), voluntary by members, and voluntary by creditors. The key differences between member and creditor voluntary winding up relate to control, meetings, liquidator appointment, and powers of the liquidator. Relevant sections of Indian law governing winding up are also cited.
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against which they can evaluate those classes of AI applications that are probably the most relevant for them.
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
Receivership and liquidation Accounts
Being a Paper Presented at Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) on Friday, August 18, 2023.
The Future of Criminal Defense Lawyer in India.pdfveteranlegal
https://veteranlegal.in/defense-lawyer-in-india/ | Criminal defense Lawyer in India has always been a vital aspect of the country's legal system. As defenders of justice, criminal Defense Lawyer play a critical role in ensuring that individuals accused of crimes receive a fair trial and that their constitutional rights are protected. As India evolves socially, economically, and technologically, the role and future of criminal Defense Lawyer are also undergoing significant changes. This comprehensive blog explores the current landscape, challenges, technological advancements, and prospects for criminal Defense Lawyer in India.
Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee
Presentation slides for a session held on June 4, 2024, at Kyoto University. This presentation is based on the presenter’s recent paper, coauthored with Hwang Lee, Professor, Korea University, with the same title, published in the Journal of Business Administration & Law, Volume 34, No. 2 (April 2024). The paper, written in Korean, is available at <https://shorturl.at/GCWcI>.
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.