What is Bankruptcy,Affidavit and Winding up of companies? - Common legal terms must know
Bankruptcy or insolvency is a legal status of a person or an organisation that cannot repay the debts owed to creditors. In the majority of cases, bankruptcy is initiated by the debtor . An involuntary bankruptcy petition can not be filed against an individual debtor who is not engaged in business.
Affidavit isawrittendeclarationuponoathmadebeforeanauthorizedofficial,such as a notary public.
In other words,An affidavit is a formal sworn statement of fact, signed by the author, who is called the affiant or deponent, and witnessed as to the authenticity of the affiant's signature by a taker of oaths, such as a notary public or commissioner of oaths.
Winding up of a company is defined as a process by which the life of a company is brought to an end and its property administered for the benefit of its members and creditors. An administrator, called the liquidator, is appointed and he takes control of the company, collects its assets, pays debts and finally distributes any surplus among the members in accordance with their rights. At the end of winding up, the company will have no assets or liabilities. When the affairs of a company are completely wound up, the dissolution of the company takes place. On dissolution, the company's name is struck off the register of the companies and its legal personality as a corporation comes to an end.
