Realisation of assets
1. Divisible property:
The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but he must take it under his control and apply it in satisfaction of the debts, and distribute any surplus among the members according to their respective rights and interests ss.239,296. The property available for this purpose is:
- All the property of the company at the commencement of winding up.
- Property seized in execution of a judgement which was not completed by that date
- Property used to give a fraudulent preference to creditors s313. Any transaction made by a company which cannot meet its debts as they fall due with a view to preferring one creditor to another, within 6 months of the commencement of the winding up, is void.
2. Recovery of property:
The following steps may be taken to recover the company's property:
- A private examination many be held by the court of any person thought capable of giving information as to the company's property or affairs s.263
- Public examination of a promoter or officer may be held on a further report by the Official Receiver s.265: (see paragraph g,3 above)
- If it appears that the company has carried on business with intent to defraud creditors or for any fraudulent purpose, the court many order any person who were knowingly parties to the fraud to be personally liable without any limitation of liability for such debts of the company as the court may direct s.323.
- Misfeasance proceedings may be brought against any promoter, officer, manager or liquidator for the recovery of money or property or the contribution of a just sum to the company's assets s.324.