Use the information below to answer questions 3 and 4. Aboki Plc, became the insolvent and decided to wind up to meet the legitimate claims of its creditors...

Answer Details

After paying the debts of Aboki Plc, the balance goes to the shareholders. This is because shareholders are the owners of the company, and they have a residual claim on the company's assets after all debts and other obligations have been settled. Babalawee, as the manager of the dissolution process, is responsible for ensuring that the company's assets are liquidated and the proceeds are used to settle the claims of creditors. Once this has been done, any remaining balance will be distributed among the shareholders according to their shareholding in the company.