Procedure liquidating a company kenya boomer dating advice
A voluntary liquidation may also by commenced by the board of directors if an event specified in the company's constitution has occurred.
Voluntary liquidation may be in one of two forms, depending on whether or not the company is solvent.
Broadly speaking, the liquidation process is as follows: There is a hierarchy that determines the order in which a company's assets must be distributed in a liquidation. Any secured creditors have the first right to the assets and are usually paid out before there is a distribution.
Liquidation or winding up refers to the process whereby the company gives up its business, sells off its assets , pays its debts and distributes whatever surplus remains amongst its members or otherwise as its constitution may provide.
After these steps have been carried out, the company is formally dissolved.
The law classifies liquidations into two types: voluntary (which is by a shareholders' resolution) or compulsory (by a court order).
The application may be brought by the company or a majority of its directors, or by the Registrar of Companies, or by a creditor.
View profile MMAN Advocates is a leading corporate law firm in Kenya, which aims to provide innovative and meaningful legal solutions for our clients.
With a growing team of 20 lawyers, we advise individuals, SMEs, leading companies and the public sector in eight practice areas namely: View more information about MMAN Advocates Aviation Finance & Leasing provides local insight into the most pressing questions arising from the financing and leasing of aircraft.
If the company is solvent the shareholders can supervise the liquidation.
However, if the company is insolvent, the creditors may take control of the liquidation process by applying to the court.
Written by international experts, Aviation Finance & Leasing covers the la…