⛌

1	2	3	✚
4	5	6	➖
7	8	9	✖
.	0	⚌	➗
Clear		Claer all

liquidation Type and order of payment

how to liquidate a company ?

Follow the rules stated in the winding up procedure to liquidate the company

I. winding up procedure ( winding up type )

step-1: Petition to court for liquidation company

Those who have the right to compulsory liquidation

central and state government
court
register of the company
main eligibility
- I The activity of the company against the country
- II The activity of the company against the country law
- III The company does not pay for income tax
- III fraud activity

Those who have the right to voluntary liquidation

creditors
shareholders
main eligibility
- I Continuous loss
- II Unable to repay the creditors
- III No future need

step-2 Legal procedure

How to start a company >>>>

prepare the documents
prepare MOA
prepare AOA
appointment employer and employee
investment

After registering the company the company becomes an artificial person

Artificial person What can do !

Can be purchased in the name of the company

asset
shares

Can be borrowed in the name of the company

loan
credit purchases

Can be lending in the name of the company

loans given
investment

You can sue in court on behalf of the company

How to dissolve a company (Legal procedure)

There should be no assets in the name of the company (assets sold)
There should be no debt in the name of the company (That is important)
Debtor must repay the money owed to the company

The liquidators is appointed to do this work

The liquidators prepares the liquidation statement according to the order stated in the winding up

II winding up order to payment

I : secured creditors

example

balancess sheet
liability	amount	asset	amout
capital	220000	cash	200000
loan on buliding	80000	bulinding	100000

The liquidators have the cash give tho bank retirive the ducument to sale
no surpuless not necessry to retrive the document

liqudation statement
recipt	amount	amount	payment	amout
amount realised		200000
buliding	100000
loan on buliding	80000	20000	capital	220000

II liqudation charges

liagal charges $2000
liqudation expanses $500
remuneration 1% paid by asset realised

liqudation statement
recipt	amount	amount	payment	amout
amount realised		200000	liqudation chrges	2000
buliding	100000		liqudation expanses	500
loan on buliding	80000	20000	remuneration 1% asset realised (300000 * 1/100)	3000
			capital	214500

III Debenture

liqudation date 31/03/21

10% debenture $10000
out satnding inters 1 year

payment date 31 /12/21

company is insolvent does not pay 9 month interest
company is solvent pay the 9 month interest

liqudation statement
recipt	amount	amount	payment	amout
amount realised		200000	liqudation chrges	2000
buliding	100000		liqudation expanses	500
loan on buliding	80000	20000	remuneration 1% asset realised (300000 * 1/100)	3000
			debenture	10000
			out standing interst	1000
			interest 10000 * 10/100 *9/12 =	750
			capital	202750

IV unsecured creditors

prefernacial creditors $10000
unsecured creditors $20000

liqudatore remuneration 6% aggred to pay

asset realised 1%
preferancial creditors 1%
unsecures creditors 1%
shareHolder 3% (equity)

liqudation statement
recipt	amount	amount	payment	amout
amount realised		200000	liqudation chrges	2000
buliding	100000		liqudation expanses	500
loan on buliding	80000	20000	liqudatore remuneration
			1% on asset realised (300000 * 1/100)	3000
			1% on preferance creditors (10000 * 1/100)	1000
			1% on unsecured creditors (20000 * 1/100)	2000
			debenture	10000
			out standing interst	1000
			interst 10000 * 10/100 *9/12 =	750
			preferancial creditors	10000
			unsecured creditors	20000
			share capital	169750

V : share capital

4 % preferance share 1000 share $90 each
- interime dividend 9 month
- dividend arriers 1 year
equtiy shares 700 shares $70 each
equtiy shares 500 shares $90 each

liqudation statement
recipt	amount	amount	payment	amout
amount realised		200000	liqudation chrges	2000
buliding	100000		liqudation expanses	500
loan on buliding	80000	20000	liqudatore remuneration
			1% on asset realised (300000 * 1/100)	3000
			1% on preferance creditors (10000 * 1/100)	1000
			1% on unsecured creditors (20000 * 1/100)	2000
			3% on equity share holder (73450 * 3/103)	2139
			debenture	10000
			out standing interst	1000
			interst 10000 * 10/100 *9/12 =	750
			preferancial creditors	1000
			unsecured creditors	2000
			preferance share capital	90000
			dividend arriers 90000 * 4/100	3600
			intrerim dividend 90000 * 4/100 *9/12	2700
			cash paid equity share holder 700 share at $51.0925 each	35764.75
			cash paid equity share holder 500 share at $71.0935 each	35546.25

equity share holder found available $71311

particuler	amount
equity share holder 700 share at $70 each	49000
equity share holder 500 share at $90 each	45000
(-) amount availble	71311

loss per each share (22689/1200) $18.9075