Secretarial practice

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Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XX. Winding up

Collection:: Economics Books

WINDING UP can apply to the Court under s. 252 to exercise the power con- ferred by s. 210 to fix a time within which creditors must prove their debts or be excluded from any distribution made before their debts are proved. The position of secured creditors requires some explana- tion. By s. 262 of the Act, the provisions of the bankruptcy law as to secured creditors are applied to insolvent companies in winding up. The result is that a secured creditor of an insolvent company in liquidation may adopt one of four courses: (1) he may rely on his security and not prove at all; although, of course, should his security on realisation prove to exceed the amount of his debt, he must hand over the surplus to the liquidator; (2) he may realise his security, and if it shows a deficit, he may prove for the balance; (3) he may give up his security to the liquidator and prove for the whole debt; (4) he may assess the value of his security, and, after deducting the assessed value, prove for the balance of his debt. If he adopts the last course, the liquidator can redeem at the assessed value; or if he is dissatisfied with the assessed value, require -the property to be sold [Bankruptcy Act, 1914, 2nd schedule, para. r3]. A creditor can, however, amend his valuation and proof under para. 13 of that schedule on show- ing to the satisfaction of the liquidator, or the Court, that the valuation and proof were made bond fide on a mistaken estimate, or that the security has increased or diminished in value since its previous valuation. An important duty of the liquidator arises in connection with secured creditors. The bulk of secured creditors of a company are ordinarily debenture holders, that is to say, creditors of the company whose debts are secured in most instances by a mortgage or charge upon the whole under- taking of the company, including, generally, its uncalled capital. The liquidator must ascertain whether the deben- tures were validly issued, and whether they are duly registered in cases where registration is required, remembering that, should the security turn out to be invalid, the unsecured creditors will receive the benefit of it with the debenture holders, who in such a case would be themselves, really, ansecured creditors. The question of what is the best policy for the liquidator to adopt, where the whole of the company’s assets are mortgaged to debenture holders, is often one of extreme difficulty, and sometimes it happens that a Scheme of Arrangement under s. 153 (see p. 222) is the best solution. [t is also within the province of the liquidator to investigate the validity or otherwise of any security held by any secured creditor, other than debenture holders. In this connection. Secured Creditors.

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