Procedure liquidating a company kenya
How Assets and Shareholders Are Dealt With In The Case Of Liquidation and Dissolution Asset management in business dissolution is determined by the current position of the ideal stock.
Like other rights accessible by the ideal stock, the credential of preference makes the key governing document, which basically decides the sum to be expected by chosen shareholders (Houghton, 2002).
The minutes of the meeting shall be submitted to the Ministry of Commerce within fourteen days from the date of the meeting.
The liquidator has the duty to deposit all the company's books of accounts with the Registrar's office, where they shall be kept for ten years counting from the date of final approval of the liquidation.
Hold a Board of Directors' meeting to adopt and approve the proposed liquidation of the company and to fix the dates for two separate General Meetings of the shareholders to consider the issue.
Any of the directors or a person authorized by the directors may issue notices calling for such shareholders' meetings, unless required otherwise by the Articles of Association of the company.
On the other hand, a corporation can be dissolved willingly by its possessors or unwillingly by the secretary of nation or state for not paying taxes or the creditors can request a court to force it into closure. However, when dissolution occurs it brings about a dissolution procedure that starts with the disbursement of remaining company business and completes with the splitting up of the social between associates.These include liquidation of resources and the supplying of the incomes to owners and creditors. Thus, the main disparity between dissolution and liquidation is that liquidation comprises the entire dissolution procedure.This paper discusses the difference between liquidation and dissolution and analyzes how assets and shareholders are dealt with in such a situation.Because the main aim of selling out a business is often the failure or incapability to cover costs, then corporations may decide not to waste their entire resources and time getting the full worth of their resources and then end up liquidating them at a noteworthy discount.Dissolution Dissolution is the termination of a corporation, often on voluntary standings of the business holder.