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Bankrupt abc ltd co.

Pankaj Arora (Learner) (3134 Points)

31 July 2012

Dear All

Suppose ABC Ltd co. is going to bankrupt. Is there shareholder any right on company to pay them their value by selling their assets?

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4 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 06 August 2012

guys...pls reply...

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(Guest)

Dear Pankaj,

A shareholder does have a right to participate in the assets of the company, which would be left over after winding up, but not in the assets as a whole.

Regards,

Veeral Gandhi

Pankaj Arora (Learner) (3134 Points)
Replied 14 August 2012

thnaks for your reply.

so it means we can pay by rest assets to all shareholders equally ?

(Guest)

Dear Pankaj,

In the case of winding up, after realizing all assets and paying of all liabilities, priority of the payment is normally as follows :

All taxes, cess, revenue dues to Central & State Govt.
Dues of the employees
Secured loans
Unsecured loans
To pay the surplus (if any) to the shareholders in proportion to the paid-up value of shares.

Regards,

Veeral Gandhi