228 SECRETARIAL PRACTICE

Compulsory
Order.

winding up superseded a voluntary winding up, e.g. if deben-
tures had been issued three months before the passing of the
resolution, but more than three months before the presentation
of the petition. (See s. 212 of the Act of 1908.)

If a compulsory winding up supersedes a voluntary winding
up, all proceedings in the voluntary winding-up will be deemed
to be valid, unless on proof of fraud or mistake, the Court
directs otherwise [s. 175 (1)].

The liquidator, who is generally assisted and partly con-
trolled by a committee of inspection, composed of creditors
and contributories, takes the necessary steps to collect and
realise the assets, to settle the lists of creditors and contri-
butories (unless the Court dispenses with a list under s. 203),
and to pay the debts, and then to adjust the rights of the
contributories, distributing amongst them any surplus.
Upon the completion of the winding up, he obtains his release
from the Board of Trade [s. 197], and the Court makes an
order for the dissolution of the company [s. 221]. The liquida-
tor must report the making of the order to the Registrar
within 14 days of its being made [s. 221 (2)].

An order for a compulsory winding up is nearly always
made on the petition of a creditor when the company is
insolvent, and a secretary of a company is unlikely to be
appointed liquidator in the compulsory winding up thereof.
[t is not, therefore, proposed to consider in any detail the
other provisions of the Act applicable in a compulsory liquida-
tion. Attention may, however, be called to the following
points :—
(x) If a petition is presented, the Court may, even before an
order is made for winding up, stay any pending pro-
ceedings [s. 172] or appoint a provisional liquidator
's. 184]; and after an order has been made or a pro-
visional liquidator appointed no proceeding may be
commenced or proceeded with except by leave of the
Court [s. 177].

{f an order is made, any disposition of the property of
the company or transfer of its shares after the com-
mencement of the winding up (see p. 22% above), will
be void unless the Court otherwise orders [s. 173], and
any execution put into force against its assets after
the same date will be altogether void [s. 174].

If an order is made or a provisional liquidator is
appointed, the liquidator or provisional liquidator
(if one is appointed) takes into custody or under his
control all the company’s property [s. 18g], but the

2)

(3)