Oppression - shareholders dispute under section 216 of the Companies Act (Cap.Any surplus is then distributed among the contributories of the company. they are paid out of the company’s assets equally. Unsecured creditors are paid on a pari passu basis, i.e. The rights of unsecured creditors over the company’s assets are virtually “frozen” upon the commencement of the liquidation to avoid a further deterioration of the company’s financial position and proliferation of its liabilities. When a company is being wound up, the company’s business ceases to operate and its assets and affairs are handed over to an independent liquidator whose powers, duties and functions are regulated by the Insolvency, Restructuring and Dissolution Act 2018. to terminate the company's existence by its eventual dissolution.to ensure a just distribution of the company's assets among creditors and contributories.Upon the completion of the liquidation, the company goes into dissolution and it ceases to exist. The information below, unless otherwise stated, is largely applicable to the liquidation of a limited liability partnership.Īny surplus is then distributed among the contributories of the company according to their rights and interests, or otherwise dealt with as the constitution of the company directs. Liquidation is a process where the company’s assets are seized and realised, with the resulting proceeds used to pay off its debts and liabilities.
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