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In which situation shares become worthless? If the the shares become worthles, liqudator take charge and sell the company’s asset,right? What would happen if the amount is larger and still cannot be settled even after the liquadation?
Generally, the unsecured creditors would get so many cents per dollar or pence per pound for their debt. This is why their is a hierarchy for deciding who gets paid first on liquidation. Generally, as a result of separate legal corporate personality, there is no recourse to the personal assets of directors and shareholders. This question seems more related to the law paper than financial accounting. Hope this helps.
Thank you. I do self study for ACCA, and I have decided to do FA first. This question just popped up when I read the book under the topic of llC.Any ways, Thanks again.
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