Sunday, 13 January 2013
Status Open
Question/Description
Topic: “WINDING UP OF COMPANIES”
Learning Objectives:
The students will be able to;
· Understand the concept of Winding up of companies
· Understand the process to protect the company from winding up
Learning Outcomes:
After completing this activity, the students will be able to;
Evaluate the different methods of winding up of the company
Identify the implications of winding up by the court.
Case # 01
The XYZ textile private company was a well-established business, and considered as a pioneer in textile sector for almost 15 years. The year 2009 was proved to be a bad financial year for the company. The company lost 70% of its shares, customers as well as some of its creditors and became insolvent by the court.
The Managing Director of the company MR. Yasir was suggested by the company’s creditors to wind up the company as their chances of survival were slimmed to none. But Mr. Yasir did not want to let his company wind up because the company enjoyed an excellent financial position in the past years and he believed an honest approach of creditors would be better as he was trying to maximize the interest of creditors. Mr. Yasir suggested his creditors to appoint a lawyer to represent the company in the court and help them striking out the petition.
Discussion Question:
Being the student of Business & Labour law, what do you think, should the company wind up the business or not? Support your answer with solid reasons. What would be the reasonable suggestions from your side to stop the business wind up?
Question/Description
Topic: “WINDING UP OF COMPANIES”
Learning Objectives:
The students will be able to;
· Understand the concept of Winding up of companies
· Understand the process to protect the company from winding up
Learning Outcomes:
After completing this activity, the students will be able to;
Evaluate the different methods of winding up of the company
Identify the implications of winding up by the court.
Case # 01
The XYZ textile private company was a well-established business, and considered as a pioneer in textile sector for almost 15 years. The year 2009 was proved to be a bad financial year for the company. The company lost 70% of its shares, customers as well as some of its creditors and became insolvent by the court.
The Managing Director of the company MR. Yasir was suggested by the company’s creditors to wind up the company as their chances of survival were slimmed to none. But Mr. Yasir did not want to let his company wind up because the company enjoyed an excellent financial position in the past years and he believed an honest approach of creditors would be better as he was trying to maximize the interest of creditors. Mr. Yasir suggested his creditors to appoint a lawyer to represent the company in the court and help them striking out the petition.
Discussion Question:
Being the student of Business & Labour law, what do you think, should the company wind up the business or not? Support your answer with solid reasons. What would be the reasonable suggestions from your side to stop the business wind up?
