https://www.taxtmi.com/caselaws?id=96857 A voluntary liquidator may carry on a company's business for the beneficial winding-up where he bona fide and reasonably considers continuation necessary; obligations properly incurred in that course rank in priority to pre-liquidation creditors. The liquidator's judgment is assessed by whether it was honestly and reasonably formed, not by later events proving the decision unwise. Where the statutory power was properly exercised, the liquidator's remuneration is treated as part of the costs and expenses of the liquidation. Available assets are applied first to taxed costs and liquidation expenses, then to post-liquidation creditors pari passu, with any balance available only for pre-liquidation creditors. en-us Mon, 10 Mar 1941 00:00:00 +0530 Wed, 11 Jan 2012 16:30:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96857 A voluntary liquidator may carry on a company's business for the beneficial winding-up where he bona fide and reasonably considers continuation necessary; obligations properly incurred in that course rank in priority to pre-liquidation creditors. The liquidator's judgment is assessed by whether it was honestly and reasonably formed, not by later events proving the decision unwise. Where the statutory power was properly exercised, the liquidator's remuneration is treated as part of the costs and expenses of the liquidation. Available assets are applied first to taxed costs and liquidation expenses, then to post-liquidation creditors pari passu, with any balance available only for pre-liquidation creditors. Case-Laws Companies Law Mon, 10 Mar 1941 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96857