Liquidating a ltd company
Administrators are usually experienced practitioners who can offer real insight into turning a business around.Since one of the primary objectives of administration is to rescue the business as a going concern, the broad reaching powers of the administrator given the possibility to leave a company in a vastly improved position. This may occur in the following circumstances:- (a) Special resolution of the company: – If the company has by special resolution resolved that it may be wound up by the court, the court may pass a winding up order.
The company’s reputation may also suffer if customers lose confidence.(c) Failure to commence or suspension of business: – Where a company does not commence its business within one year from its incorporation, or suspends its business for a whole year, the court may order for is winding up.The court exercises power in this case only if the company has no intention of carrying on its business or if it is not possible for it to carry on its business.A shipping company lost its only ship, the remaining assets being a paltry sum of £363.Majority shareholders filed a petition for winding up but minority shareholders opposed this and desired to carry on business.