292. Effect of voluntary winding up

Question 1

292. Effect of voluntary winding up

Answer 1

General overview
[292.01] Section 292 provides that upon the commencement of a voluntary winding up, the company’s business shall cease, except in so far as is necessary for the purpose of carrying on the beneficial winding up thereof. However, the company’s organs of powers, i.e. the general meeting and board of directors, shall continue until it is dissolved. This provision appears to be problematic because upon the appointment of the provisional liquidator, the company’s business ceases and the powers of the directors are terminated