Thursday, November 21, 2019
Law business organisation Essay Example | Topics and Well Written Essays - 2250 words - 1
Law business organisation - Essay Example ?                                                                                                 2   The section 33 (a) of Insolvency Act 1986 state s that a liquidator is appointed, probably by court, to handle some issues concerning the company. These issues include but are not restricted to: (i) settling all past financial obligations (contracts and debts) the company has incurred before the liquidation; (ii) holding regular meetings with the creditors with the hope of providing them the latest information about the company’s progress; (iii) and, continuing the company’s business activities (s. 134 (5)).           The liquidator is not expected to be concerned with any financial obligation or contract any of the three plumbers, namely Charlie, Edwin, and Adam may have had before the company was formed on May 1. In other words, Plumbers Mate Ltd should not bother the liquidator to pay for the services offered to Adam before the company was established. This realization absolves the liquidator of any financial payment to Plumbers Mate Ltd, and Adam should be duly informed to pay up his debt with the Plumbers Mate Ltd.  Although, it is not indicated in the scenario that the service bought by Adam was later reverted to Plumbers Express Ltdâ€â€the new                                                                                                                                     3        There is no record in the scenario that Plumber Express Ltd borrowed money directly from any bank or financial institution, but the donation of a building worth 200,000 pound by Charlie and Edwin buying a computer and printer from Computer Galore Ltd could be debited against the company. Hence, the liquidator should see
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