State the legal consequences of a winding up order made against a company

All floating charges created the company crystallize and become fixed.
 The company ceases to carry on business except such as may be required for the beneficial winding up of the company.

Any disposition of the company‟s property including chosesin action,
anytransfers of shares or alteration in the status of members of the company is void.
 Any attachment, distress or execution put in force against the estate or effects of the company is void.
 Actions or legal proceedings or against the company are automatically stated.
 By virtue of his office, the official receiver becomes the provisional liquidator.
 Director‟s powers becomefunctus officioi.e. not exercisable.

Employees of the company are ipso facto dismissed. However, those who continue to render services and receive wages are deemed to have entered into a new contract of service with the liquidator.

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