Rules for every winding up under CAMA 2020: sections 654 to 698
Chapter 24 applies to every mode of winding up: notice of the liquidator, ranking of debts, preferences, offences, and what happens at the end.
Chapter 24 of Part B has 45 sections. Every section is listed below with its title.
Guides in this chapter
- Voiding a dissolution and the Companies Liquidation Account under CAMA 2020Sections 686 to 698 cover supplementary winding-up rules, including the two-year power to void a dissolution and the liquidation account.ss. 686-691
- Who gets paid first in a winding up under CAMA 2020Sections 654 to 685 set the ranking of claims, the preferential debts and what happens to creditors already enforcing against the company.ss. 654-657
- Fraudulent trading, wrongful trading and preferences on a winding up under CAMA 2020Sections 658 to 677 let a liquidator unwind unfair deals and hold directors personally liable. Here are the tests and the offences.ss. 658-660
- How can the Commission strike a company off the register under CAMA 2020?Section 692 sets two routes for striking a company off. Here is each one, what follows, and how a company can be restored.ss. 692-693
Key rules in this chapter
- Secured creditors rank first and equity holders last (section 657(6)).
- A floating charge created within three months of the winding up is invalid unless the company was solvent (section 662).
Previous: Chapter 23: Winding up under court supervisionNext: Chapter 25: Unregistered companies
Source: the Companies and Allied Matters Act 2020 as published in the Official Gazette.