Secretarial practice

Bibliographic data

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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XX. Winding up

Collection:: Economics Books

WINDING UP 255 case of a company not being wound up, if there is due from a shareholder to the company £100 in respect of calls, while the company owes the shareholder [75 for goods supplied, both transactions may properly be closed by the shareholder paying £25 to the company. But in winding up the rule is different. A contributory cannot set off a debt due to him from the company against money due from him to the com- pany in his capacity of contributory, e.g. for calls. He must first pay what, as a contributory, he owes the company, since the company’s assets must be realised, and then his position will be that of a creditor of the company who is entitled to be paid with the other creditors, in full if funds permit, but otherwise to receive a dividend. Any other rule would give preferential treatment to the contributory who, by the accident of circumstances, is also a creditor of the company. However, when the contributory is a bankrupt, set-off is allowed. Thus, the liquidator, seeking to prove in the bankruptcy for calls due, must first deduct from the amount of the calls the amount owing from the company, and prove for the balance. And conversely, where the debt due from the company exceeds the amount of the calls, set-off is allowed and the balance due to the bankrupt’s estate may be proved for in the winding up. But when all the creditors of a company are paid in full, any sum due to a contributory from the company on any account whatever may be allowed to him by way of set-off against any subsequent calls [s. 205 (3)]. A joint debt cannot be set off against a separate debt [In re Pennington and Owen, Ltd. (1925), 41 T.L.R. 657]. Some of the incidental duties of the liquidator which he may have been called upon to perform before all the assets have been realised, require a passing notice. It may be necessary or desirable for him to summon general meetings of the company from time to time. S. 248 (1) of the Act em- powers him to do so for the purpose of obtaining the sanction of the company by special resolution or extraordinary resolu- tion, or for any other purpose he may think fit. There may often be important steps in the winding up upon which the liquidator may deem it advisable to take the opinion of the company before acting. When a meeting is to be called, the liquidator will summon it in the usual way by notices in writing stating the objects of the meeting. Ss. 235 and 244 make it incumbent upon the liquidator, in all cases where the winding up continues for more than a year, to summon a general meeting of the company at the end of the first and of every subsequent year from the commencement of the winding up; and at every such meeting he must lay before the Meetings in Liquidation.

Access restriction

Copyright

fullscreen: Secretarial practice

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation