- All floating charges created by the company crystallize and become fixed.?? ? The company ceases to carry on business except such as may be required for the beneficial winding up of the company.
- Any disposition of the company?s property including chosesin action, anytransfers of shares or alteration in the status of members of the company is void.
- Any attachment, distress or execution put in force against the estate or effects of the company is void.
- Actions or legal proceedings by or against the company are automatically stated.
- By virtue of his office, the official receiver becomes the provisional liquidator.
- Director?s powers become functus officiali.e. not exercisable.
- Employees of the company are ipso facto dismissed. However, those who continue to render services and receive wages are deemed to have entered into a new contract of service with the liquidator.
marto answered the question on February 6, 2019 at 06:00
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