Upon the commencement of winding up proceedings, the following consequences shall apply: 1. The business of the company ceases from the commencement of the winding up, except so far as the liquidator thinks is necessary for the beneficial winding up of the company. In such an event, every invoice, order for goods or business letter issued by the company must have the words “in liquidation” added after the name of the company. The liquidator has no power to carry on business with a view to resuscitating the company or making profits. The liquidator shall carry on the business of the company principally to enable the business to be sold off as a going concern.
2. A transfer of shares may be carried out only with the sanction of the liquidator. In effect, the membership of the company is frozen once winding up commences. 3. The directors and certain other officers of the company are under a duty to assist and cooperate with the liquidator.
4. Where the company has either bought property from or sold property to a person who was at the time of the transaction a director of the company for cash consideration and the transaction occurred within 2 years before the commencement of the winding up, the company may recover any amount by which the property was overvalued or undervalued. 5. Where the company has gone into liquidation within 6 months of the creation of a floating charge, that charge is void except to cover the amount of cash advanced to the company at the time of creation or subsequently, together with interest at 5% per annum. The liquidator(s) appointed upon the winding up of the company to manage the affairs of the company for the purpose of the liquidation shall:
1. investigate the affairs and assets of the company as well as the conduct of its directors and other related persons;
2. recover and realise the company’s assets at the best possible price and in a manner that is to the best advantage to the company; and