Shareholders voting for a liquidation of a company should be aware that limited liability will not absolve them from the requirement to pay up the amount that is due on their shares.
A liquidator has the right to seek payment on unpaid share capital and may settle, what is known as a list of contributories.
Please note that the above is provided for illustration purposes only and comprises a short view of extremely complex insolvency and other legislation. This is a complicated area and specific advice must be sought before undertaking any course of action or before refraining from any course of action. Gore and Company takes no responsibility for any loss incurred to or by any person who either acts or refrains from acting on the basis of the above or of any other item published on this website. The above note may not be reproduced without the prior written consent of Gore and Company.
This business faced financial difficulties due to fixed royalties payable to DVD patent holders, increasing competition from overseas firms and falling demand during the recession. The Directors sought Gore and Company’s help and, after a business review concluded there was no hope of trading out of its indebtedness, were advised to put the company into Administration as soon as possible. ...
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