In this article we will discuss about the accounting for liquidation of a company. Liquidation— Bankruptcy: When an insolvent company is to be liquidated, the provisions established by Chapter 7 of the Bankruptcy Reform Act regulate the process. This set of laws was written to provide an orderly and equitable structure for selling assets and paying debts. To this end, [...]
In this article we will discuss about:- 1. Meaning of Liquidation 2. Liquidation and Insolvency 3. Consequences of Winding Up. Meaning of Liquidation: The word 'Liquidation' has not been used anywhere in the Companies Act, 1956. It is the word 'winding up' which has been used in this Act. By winding up of a Company, we mean, "Winding up of [...]
In this article we will discuss about the powers and duties of a liquidator of a company. Also you will learn about the order of payment by a liquidator. Powers of Liquidator: Subject to certain legal provisions and adherence to certain procedures the powers of a liquidator are broadly enumerated as follows: (1) He can exercise the following powers only [...]