{"id":5433,"date":"2022-11-29T02:50:20","date_gmt":"2022-11-29T02:50:20","guid":{"rendered":"https:\/\/fareezbiz.com\/crm\/?p=5433"},"modified":"2023-08-07T06:34:22","modified_gmt":"2023-08-07T06:34:22","slug":"winding-up-101-the-just-and-equitable-principle","status":"publish","type":"post","link":"https:\/\/fareezbiz.com\/crm\/free-article\/winding-up-101-the-just-and-equitable-principle\/","title":{"rendered":"Winding Up 101: The \u2018Just and Equitable\u2019 Principle"},"content":{"rendered":"\n

The law of winding up recognizes the \u2018just and equitable principle\u2019 when an individual or a company applies for a winding up the order with the court. In this article, come find out what is the principle about and how it operates in a winding-up situation<\/p>\n\n\n\n

\"Winding<\/figure>\n\n\n\n

Make an appointment with Company Secretary<\/mark><\/a> and Business Lawyer<\/mark><\/a> for advice and consultation<\/p>\n\n\n\n

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contact us<\/a><\/div>\n<\/div>\n\n\n

Company Law<\/h2>\n\n\n

A court can wind up a company if the company or any individual listed under the Act applies for a winding-up order to the court. Once an application is filed to the court, the court will then decide if they are reasons for the company to be wound up. One of the circumstances, as noted in the Act, is that a court may wind up a company if the court thinks that it is just and reasonable to wound up the company.<\/p>\n\n\n\n

However, the Act does not define nor expound on what is “just and equitable” and how it should be applied in a winding-up scenario.  Therefore, let us dive into court cases to understand more about the principle.<\/p>\n\n\n

What is the just and equitable principle?<\/strong><\/h3>\n\n\n

The just and equitable principle (\u2018the principle\u2019), was created as a common law (i.e. laws created not by legislation or statute but by the court) principle to supplement and <\/p>\n\n\n\n

recognize the rights of the members of a company that is not defined in the articles\/ memorandum of association of the company. 
This, however, does not in any way allows the individual or the company who filed the petition or the court to completely disregard the obligations, duties, and responsibilities he holds as a member of the company, as he is legally bound by what he agreed upon when he decided to form a company with another person\/ when he decided to join the company. The court, however, recognizes that there will be instances where it is unreasonable, unjust, or inequitable for an individual to insist on upholding legal rights in a particular way.<\/p>\n\n\n