disclaimerthe liquidator may disclaim onerous


Disclaimer

The liquidator may disclaim onerous property consisting of:

1.    Land burdened with onerous covenants;
2.    Stocks and shares;
3.    Unprofitable contracts, or
4.    Other property which is not saleable by reason of the liabilities attaching thereto;

and thereupon all the rights, interests and liabilities of the company in relation to the property are determined as from the date of disclaimer.

The liquidator may disclaim in writing at any time within twelve months after commencement of the winding up, or such extended period as the court may allow.

This right is lost if a person interested in the property applies in writing for him to decide whether he will disclaim or not; in this case the liquidator must give notice of disclaimer within 28 days of receiving the application, unless the court extends the time.

The court's consent is not required to the disclaimer except in the case of certain leases.

Any person interested in property disclaimed may apply to the court for an order vesting the property in himself.

Any person injured by the disclaimer may prove in the liquidation to the extent of his loss.

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Financial Accounting: disclaimerthe liquidator may disclaim onerous
Reference No:- TGS0178872

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