| Advertisement |
Winding up subject to the supervision of court
When a company has by special or ordinary resolution resolved wind up voluntarily, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision the Court and with such liberty for creditors, contributories or others to apply to the Court and generally on such terms and conditions, as the Court thinks just.
The application for a creditor, contributory or the voluntary liquidator may make such intervention of the Court, when there are irregularities or frauds in the voluntary winding up.
The effect of such an order is: -
1. The liquidator may exercise his powers for liquidation subject to terms and conditions imposed by the Court.
2. The Court obtains jurisdiction over suits and legal proceedings as in case of compulsory winding up by the Court.
3. The supervision order also confers the power on the Court to make calls or to enforce calls made by the liquidators and to exercise all other powers which it would have in case of compulsory winding up by the court.
4. The supervision order when passed, acts as a stay of actions and other proceedings against the company
5. When an order has been made for winding up subject to supervision of Court and an order is afterwards made for winding up by the Court up, the Court has power to appoint any person as either provisional or permanent liquidators, in addition to, and subject to the control of the Official Liquidator. The Company cannot be dissolved except by order of dissolution by the Court
When a company has by special or ordinary resolution resolved wind up voluntarily, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision the Court and with such liberty for creditors, contributories or others to apply to the Court and generally on such terms and conditions, as the Court thinks just.
The application for a creditor, contributory or the voluntary liquidator may make such intervention of the Court, when there are irregularities or frauds in the voluntary winding up.
The effect of such an order is: -
1. The liquidator may exercise his powers for liquidation subject to terms and conditions imposed by the Court.
2. The Court obtains jurisdiction over suits and legal proceedings as in case of compulsory winding up by the Court.
3. The supervision order also confers the power on the Court to make calls or to enforce calls made by the liquidators and to exercise all other powers which it would have in case of compulsory winding up by the court.
4. The supervision order when passed, acts as a stay of actions and other proceedings against the company
5. When an order has been made for winding up subject to supervision of Court and an order is afterwards made for winding up by the Court up, the Court has power to appoint any person as either provisional or permanent liquidators, in addition to, and subject to the control of the Official Liquidator. The Company cannot be dissolved except by order of dissolution by the Court
