The XYZ textile private company was a well-established business, and
considered as a pioneer in textile sector for almost 15 years. The year
2009 was proved to be a bad financial year for the company. The company
lost 70% of its shares, customers as well as some of its creditors and
became insolvent by the court.
The Managing Director of the company
MR. Yasir was suggested by the company’s creditors to wind up the
company as their chances of survival were slimmed to none. But Mr. Yasir
did not want to let his company wind up because the company enjoyed an
excellent financial position in the past years and he believed an honest
approach of creditors would be better as he was trying to maximize the
interest of creditors. Mr. Yasir suggested his creditors to appoint a
lawyer to represent the company in the court and help them striking out
the petition.
Discussion Question:
Being the student of
Business & Labour law, what do you think, should the company wind up
the business or not? Support your answer with solid reasons. What would
be the reasonable suggestions from your side to stop the business wind
up?
