COMPANIES.
No. 58 of 1911.
2111
charge.
203. When a company is being wound up, a floating charge on the undertaking or property of the company created within three months of the commencement of the winding-up shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for the charge, together with interest on that amount at the rate of five per cent.
204. (1) The liquidator may, with the sanction following: scheme of liquidation sanctioned.
(a) in the case of a winding-up by the court, with the sanction either of the court or of the committee of inspection;
(b) in the case of any winding-up subject to supervision, with the sanction of the Court; and
(c) in the case of a voluntary winding-up, with the sanction of an extraordinary resolution of the company,
do the following things or any of them:-
(i) pay any classes of creditors in full;
(ii) make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, certain or contingent, ascertained or sounding only in damages, against the company, or whereby the company may be rendered liable;
(iii) compromise all calls and liabilities to calls, debts, and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, ascertained or sounding only in damages, subsisting or supposed to subsist between the company and a contributory, or alleged contributory, or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or the winding-up of the company, on such terms as may be agreed, and take any security for the discharge of any such call, debt, liability or claim and give a complete discharge in respect thereof.
(2) In the case of a winding-up by the court, the exercise by the liquidator of the powers of this section shall be subject to the control of the court, and any creditor or contributory may apply to the court with respect to any of those powers.
c. 69, s. 214,
COMPANIES.
No. 58 of 1911.
2111
charge.
203. When a company is being wound up, a floating charge Effect of on the undertaking or property of the company created within oating three months of the commencement of the winding-up shall, 8 Edw. 7, unless it is proved that the company immediately after the c. 69, s. 212. creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for the charge, together with interest on that amount at the rate of five per cent.
204. (1) The liquidator may, with the sanction General following:
scheme of liquidation
sanctioned.
(a) in the case of a winding-up by the court, with the may be sanction either of the court or of the committee of inspection; 8 Edw. 7.
(b) in the case of any winding-up subject to supervision, with the sanction of the Court; and
(c) in the case of a voluntary winding-up, with the sanction of an extraordinary resolution of the company,
do the following things or any of them :-
(i) pay any classes of creditors in full;
(ii) make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, certain or contingent, ascertained or sounding only in damages, against the company, or whereby the company may be rendered liable;
(iii) compromise all calls and liabilities to calls, debts, and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, ascertained or sounding only in damages, subsisting or supposed to subsist between the company and a contributory, or alleged con- tributory, or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or the winding-up of the company, on such terms as may be agreed, and take any security for the discharge of any such call, debt, liability or claim and give a complete discharge in respect thereof.
(2) In the case of a winding-up by the court, the exercise by the liquidator of the powers of this section, shall be subject to the control of the court, and any creditor or contributory may apply to the court with respect to any of those powers.
c. 69, s. 214,
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