Preferential Payments - Law Dictionary Search Results
Home Dictionary Name: preferential payments Page: 2Winding-up
Winding-up, the process by which an insolvent estate is distributed, as far as it will go, amongst the persons having claims upon it. The term is most frequently applied to the winding-up of joint-stock companies.The property of a company is collected and distributed firstly in discharge of its liabilities, and secondly, among its members according to their respective rights with a view to its dissolution. If the assets are not sufficient to meet the liabilities, a company is usually wound up by the Court. In other cases the winding-up is usually voluntary and conducted by the company itself either with or without the supervision of the Court. The provisions of the (English) Companies Act, 1929, govern a winding-up in any of these three modes (s. 156). In any winding-up the members who may be called upon to contribute are ascertained and their liability determined under ss. 157-162; see CONTRIBUTORIES. Debts and claims of all kinds require to be proved and if not of certain value to be...
Preferential or preference shares or stock
Preferential or preference shares or stock, shares or stock in a company having priority as to payment of dividends of a fixed amount, and, in some cases, of capital upon a winding-up, over the ordinary shares. The dividends are usually contingent upon the profits of each year or half-year. In some cases, however, the arrears of dividend form an accumu-lating debt by the ordinary to the preference shareholders, the preference being in that case described as a 'non-contingent' or a 'xumulative' preference. And see DEFERRED STOCK....
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