The company went into liquidation on 1 August 20X1 with net debt of $7 000 000.What is the maximum amount, if any, the liquidator can require the shareholders of Dooby Ltd to pay per share?

Question

Quizplus · Accepted Answer

The maximum amount the liquidator can require the shareholders of Dooby Ltd to pay per share is $0.625. This is because the net debt of the company is $7,000,000 and the company has 11,200,000 shares in issue. Therefore, the maximum amount that the liquidator can require the shareholders to pay per share is $7,000,000 / 11,200,000 = $0.625.

The Company Went into Liquidation on 1 August 20X1 with Net