| Commentary

206 Distribution of surplus assets

| Commentary

206 Distribution of surplus assets

The surplus assets are (unless the articles provide otherwise) distributed among the members according to their rights and interests in the company1. The articles of association of most companies contain a provision entitling the liquidator with the appropriate sanction to divide among the members in specie the whole or any part of the assets of the company.

The liquidator may exercise the court’s power of settling a list of contributories and must adjust the rights of the contributories among themselves2. The purpose of the liquidator settling a list of contributories is

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