Liquidator's Final Statement of Account
As we know, the main job of the liquidator is to collect the assets of the company and realise them and distribute the money realised among right claimants. For this purpose he maintains a cash book for recording the receipts and payments and is required to submit an abstract of the cash book to the court in case of compulsory winding up and to the company in case of voluntary winding up. The liquidator is also required to prepare an account of winding up known as liquidator's Final Statement of Account after the affairs of the company are fully wound up.
This account takes the form of Cash Account and the following receipts are shown on the debit side of this account:-
(1) Amount realised on sale of assets.
(2) In case of assets specifically pledged in favour of creditors, only the surplus from it, if any is entered as surplus from securities.
(3) Amount received from delinquent directors and other officers of the company.
(4) In case of partly paid up shares, the holders of equity shares would be called upon to pay necessary amount not exceeding the amount of uncalled capital if the creditors claims/ claims of preference shareholders cannot be satisfied with the available amount. In case the amount is still insufficient for paying off the creditors, preference shareholders would be called upon to pay necessary amount (not exceeding the uncalled amount o such shares).
(5) Contributions made by the contributories.
On the credit side of the account, he records the payments made in the following order:
(1) Payment of secured creditors and dues to workmen up to their claim or up to the amount of securities held by secured creditors as per section 529. The balance of secured creditors left unsatisfied will be added to unsecured creditors.
(2) Legal charges
(3) Liquidator's remuneration .
(4) Liquidation expenses.
(5) Payment of creditors (e.g debenture) having a floating charge on the assets of the company. Interest on debenture should be paid up to the date of actual payment to the debenture holders and not only up to date of liquidation provided the company is solvent. But if the company is insolvent, interest is payable up to the date of commencement of insolvency proceedings.
(6) Workmen's dues and claims of secured creditors as mentioned in section 529A.
(7) Payment of preferential creditors.
(8) Payments of unsecured creditors. This may also include liability in respect of dividend declared but not paid but the payment of dividend duewill be paid only after the amount due to outsider is paid.
(9) Amount paid to preference shareholders.
(10) Amount paid to equity shareholders.
The various claims will be satisfied by the liquidator in the order mentioned above.
This account takes the form of Cash Account and the following receipts are shown on the debit side of this account:-
(1) Amount realised on sale of assets.
(2) In case of assets specifically pledged in favour of creditors, only the surplus from it, if any is entered as surplus from securities.
(3) Amount received from delinquent directors and other officers of the company.
(4) In case of partly paid up shares, the holders of equity shares would be called upon to pay necessary amount not exceeding the amount of uncalled capital if the creditors claims/ claims of preference shareholders cannot be satisfied with the available amount. In case the amount is still insufficient for paying off the creditors, preference shareholders would be called upon to pay necessary amount (not exceeding the uncalled amount o such shares).
(5) Contributions made by the contributories.
On the credit side of the account, he records the payments made in the following order:
(1) Payment of secured creditors and dues to workmen up to their claim or up to the amount of securities held by secured creditors as per section 529. The balance of secured creditors left unsatisfied will be added to unsecured creditors.
(2) Legal charges
(3) Liquidator's remuneration .
(4) Liquidation expenses.
(5) Payment of creditors (e.g debenture) having a floating charge on the assets of the company. Interest on debenture should be paid up to the date of actual payment to the debenture holders and not only up to date of liquidation provided the company is solvent. But if the company is insolvent, interest is payable up to the date of commencement of insolvency proceedings.
(6) Workmen's dues and claims of secured creditors as mentioned in section 529A.
(7) Payment of preferential creditors.
(8) Payments of unsecured creditors. This may also include liability in respect of dividend declared but not paid but the payment of dividend duewill be paid only after the amount due to outsider is paid.
(9) Amount paid to preference shareholders.
(10) Amount paid to equity shareholders.
The various claims will be satisfied by the liquidator in the order mentioned above.
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