01.Companies Act Notes.docx

Hence before opening a bank account and giving a loan

Info icon This preview shows pages 3–4. Sign up to view the full content.

as per the provisions of Articles of Association would along bind a company. Hence before opening a Bank account and giving a loan, Banks insist on the Resolution of the Company. The Minutes of a Resolution is required to signed by the Chairman of the Meeting and counter signed by the Secretary of the Company. Banker is under no obligation to verify the minutes book to ensure the reality that the meeting was held and such a decisions was taken by the Company. LIABILITY OF SHAREHOLDERS/MEMBERS: The liability of shareholders/members is limited to their share capital in the Company neither they personally nor their personal properties are held liable for the liability of the company. WINDING UP OF THE COMPANY: A Company is wound up in two ways: Voluntary winding up of a Company Winding up as per the order of the Court (compulsory winding up) When a Company is to be would up, a liquidator is appointed. The liquidator is appointed by the Company itself in case of voluntary winding up. In other case, the liquidator is appointed by the Court. The liquidator is required to convert all the assets of the Company into cash and appropriate the amount toward the various liabilities in the following order: - Liquidation Expenses - Salaries/Wages - Secured Creditors - Govt. Dues
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

- Unsecured Creditors - Preference Shareholders - Equity Shareholders
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
  • Summer '18
  • .
  • Law, Corporation

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern