Winding Up of Company The winding up is the process of putting an end to the life of the company. And during this process‚ the assets of the company are disposed of‚ the debts of the company are paid off out of the realized assets and if any surplus is left‚ it is distributed among the members in proportion to their shareholding in the company Q.1 WHAT ARE THE POWERS OF LIQUIDATOR LIQUIDATOR A person appointed to carry out the winding up of a company is called liquidator. If the winding
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Tax planning for corporate liquidation The Tax reform act of 1986(TRA) made significant changes to tax provisions which had influence on corporations. One of the most important changes was the deletion of the General Utilities doctrine; under a plan of complete liquidation it had given a tax relief for appreciated assets distribution. This essay illustrates tax law changes about corporate liquidations and suggests some tax planning strategies to mitigate the influence of TRA. Sec. 336 changes
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company. The principal remedies for dealing with insolvent companies are: 1. Examinership; 2. Receivership; 3. Liquidation. 1. The concept of examinership was introduced into Irish law by the Companies (Amendment) Act 1990. This legislation was enacted in order to provide companies which were in financial difficulties with the chance of recovering and thereby avoiding liquidation. An examinership is where the court places a company under its protection to enable a court appointed examiner to
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Book value: The book value of ordinary share is the net worth of a corporation less the par value of preference shares outstanding divided by the number of ordinary shares outstanding. Suppose the net worth of a company contains the following information viz; Preference shares (Rs. 100 per share): 1000000.00 Ordinary share (Rs.5 per share): 1500000.00 Share premium:
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balances before realization P 20‚000 P 16‚000 P 10‚000 Loss on liquidation‚ P40‚000 ( 20‚000) ( 12‚000) ( 8‚000) Cash distribution P – P 4‚000 P 2‚000 4-2: c PING PANG PONG Capital balances before liquidation P 50‚000 P 50‚000 P 10‚000 Gain of P10‚000 (150‚000-140‚000) __6‚000 __2‚000 __2‚000 Cash distribution P 56‚000 P 52‚000 P 12‚000 4-3: b PING PANG PONG Capital balances before liquidation P 50‚000 P 50‚000 P 10‚000 Loss of P40‚000 (P140‚000-P100‚000) ( 24
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Corporation’s single class of stock for a number of years. Tyrone owns the remaining 40% of the Subsidiary stock. On August 10‚ of the current year‚ Parent purchases Tyrone’s Subsidiary stock for cash. On September 15‚ Subsidiary adopts a plan of liquidation. Subsidiary then makes a single liquidating distribution on October 1. The activities of Subsidiary continue as a separate division of Parent. Locate the Applicable Authorities IRC: 332 (b)‚ 1504 (a) (see attached) Rev Rul 70-106‚ 1970-1
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Riggs‚ Inc. v. CIR.‚ 64 TC 474 (1975)‚ acq. 1976-2 C.B. 2. Facts Sec. 332‚ I.R.C. 1954‚ applicable to avoid recognition of gain on liquidation of subsidiary. Taxpayer owned 80% of the stock of the subsidiary on the date of the adoption of the plan of liquidation within the meaning of sec. 332(b). The respondent argues that at the time of the adoption of the liquidation‚ the petitioner did not owned more than 80% of the subsidiary’s stock. Therefor‚ no Sec. 332 benefit should be taken‚ resulting in
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sample financial statements of companies in the service‚ manufacturing and trading industries. VI. Course Rationale: To contribute to the full appreciation of the course‚ a student should be exposed to the formation‚ operations‚ dissolution‚ and liquidation of partnerships‚ basic considerations in forming a corporation and stock transactions. VII. Course Objectives: A. General Objective: At the end of the course the students are expected to have
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1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. In 1984‚ the Corporation has computed depreciation expense on plants‚ machinery and equipment using the straight-line method for financial reporting purposes. Prior to 1984‚ the Corporation used principally accelerated methods for its U.S. operating plants. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change
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of assets Others Mandatory redemption Board Seats Other Term Sheet Features Vesting Covenants Liquidity Preferences Anti-Dilution Protection Board Seats Please read the Note on Private Equity Securities Liquidation – Quick Review Deemed liquidation event Liquidation preference (2X‚ 3X‚ etc.) Non Participating Fully Participating Qualified public offering (QPO) Facebook Cap Table Biggest VC Success Story Anti-Dilution Protections Down round Full-ratchet vs. weighted
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