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Sunday, February 2, 2020
Law business organisation Essay Example | Topics and Well Written Essays - 2250 words
Law business organisation - Essay Example They eventually registered their business as private limited company on May 1 with Charlie, Edwin and Adam becoming the sole shareholders and directors. The initial assets of the company are: (i) the building Charlie sold to the company at 200,000 pound; (ii) the computer and printer Edwin bought from Computer Galore Ltd. On May 15, a payment request was received from Plumbers Mate Ltd for payment of the debt incurred by Adam for himself on March 15 (before their business was registered). Plumbers Express Ltd went into insolvent liquidation in August due to bad management. The current liabilities of the company include the payment to: (i) the solicitors; (ii) Computer Galore Ltd and Plumbers Mate Ltd; (iii) Charlie’s building that was sold. ... These issues include but are not restricted to: (i) settling all past financial obligations (contracts and debts) the company has incurred before the liquidation; (ii) holding regular meetings with the creditors with the hope of providing them the latest information about the company’s progress; (iii) and, continuing the company’s business activities (s. 134 (5)).                              The Liquidator and Plumbers Mate Ltd           The liquidator is not expected to be concerned with any financial obligation or contract any of the three plumbers, namely Charlie, Edwin, and Adam may have had before the company was formed on May 1. In other words, Plumbers Mate Ltd should not bother the liquidator to pay for the services offered to Adam before the company was established. This realization absolves the liquidator of any financial payment to Plumbers Mate Ltd, and Adam should be duly informed to pay up his debt with the Plumbers Mate Ltd.  Although, it is not indicated in the scenario that the service bought by Adam was later reverted to Plumbers Express Ltdâ€â€the new                                                                                                                                      3 company, Adam should hold a meeting with liquidator to explain his part in the process.                                     The Liquidator and the Creditors        There is no record in the scenario that Plumber Express Ltd borrowed money directly from any bank or financial institution, but the donation of
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