After studying this chapter you should be able to understand:
The meaning and salient features of liquidation.
The legal provisions with respect to different modes of winding up, viz,-compulsory winding up, voluntary winding up and winding up subject to the supervision of the court.
The term “contributories” and “adjustment of rights of contributories”.
The order of payments to be followed by the liquidator in making the payments out of realization.
The term “preferential payments”.
The procedure for preparation of statement of affairs and deficiency/surplus account.
The procedure for preparation of liquidators’ final statement of account.
The key terms associated with “liquidation of companies”. ...