Restoration Or Purchase

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meenakshi somasundaram (Querist)
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01 December 2024 My company holds 30% share in a dissolved company which in turn holds considerable stock in leading Banks and has a valuable landed property.

The official Liquidator knowing fully well of these assets dissolved the company in12020. These shares are with the RTA agents along with the dividend. Official Liquidator knowing fully well of these assets dissolved the company in12020. These shares are with the RTA agents along with the dividend. I approached the liquidator asking him what are the dues that has to be settled. The company has to pay 34% to the workers along with 4% interest. This is 1/6 of the consideration of the shares and landed property. Now I intend to file a case in High court to restore the company to the stage of winding up and claim my share. There are other 2 companies which have share in the dissolved company, but they have been liquidated, one voluntarily some 20 years back and the other by the official liquidator. My question is what should I do? 1 Restore the company and claim my company's share. 2. Buy the dissolved company as I envisage, I will be getting it for a cheaper price. need your guidance

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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02 December 2024 Restoring the company could allow you to reclaim your company’s share of the assets and potentially recover the value of the shares and land, provided you have a clear legal basis for doing so.
Buying the dissolved company could be an attractive option if the company’s assets are undervalued, especially considering the value of the shares and the land. This could potentially allow you to acquire the company for a lower price and then claim the remaining value of the assets. However, this option requires careful evaluation. If you buy the dissolved company, you might have less control over the assets or claims that come with it, especially if other shareholders or stakeholders (like workers) have competing interests.
If the value of the assets (the bank shares, land, and dividends) is substantial enough to outweigh the costs and risks of a lengthy legal process, restoring the company could be the more secure route. By restoring the company, you retain more control over the outcome and have a clearer path to claiming your share of the assets.

Consult with a corporate lawyer who specializes in liquidation and dissolution cases. They can assess the strength of your legal position and help you navigate the court process.
Ensure that all debts and liabilities, including the workers' claims, are properly factored into your decision. If these claims are not settled, they could reduce the assets available for distribution to shareholders.
In either case, legal counsel is critical to guide you through the complexities of restoration, liquidation, and possible acquisition.