![]() The person appointed by the holder of a floating charge debenture over a company’s assets to collect in and realise the assets of that company and to repay the indebtedness to the debenture holder. Separate meetings of creditors and contributories may decide to nominate a person for the appointment of a liquidator and possibly of a supervisory liquidation committee. 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. The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action. Upon hearing the application, the court may either dismiss the petition or make the order for winding-up. 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 generally void, and litigation involving the company is generally restrained. An order might be made where the majority shareholders deprive the minority of their right to appoint and remove their own director. 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. Ī "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations. ![]() Īn order will not generally be made if the purpose of the application is to enforce payment of a debt which is bona fide disputed. In practice, the vast majority of compulsory winding-up applications are made under one of the last two grounds.
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