In winding-up a company, the assets of the company are vested in the hands of the?
Answer Details
In winding-up a company, the assets of the company are vested in the hands of the liquidator.
Winding-up refers to the process of dissolving a company by selling off its assets, paying off its debts, and distributing any remaining funds to its shareholders or other stakeholders. The liquidator is a professional appointed by the court or the members of the company to manage the winding-up process.
One of the key responsibilities of the liquidator is to take possession of and manage the assets of the company. This includes selling off any assets that are not needed to pay off the company's debts, such as property, equipment, and inventory. The proceeds from the sale of these assets are used to pay off the company's creditors in a specific order of priority.
Once all of the company's debts have been paid off, the liquidator is responsible for distributing any remaining funds to the company's shareholders or other stakeholders. The liquidator is also responsible for filing the necessary paperwork with the registrar of companies to officially dissolve the company.
Therefore, in winding-up a company, the assets of the company are vested in the hands of the liquidator, who is responsible for managing and distributing them in accordance with the law and the interests of the company's stakeholders.