According to internet open sources, Payless is an international shoe retailer present in an about forty countries. It is a private limited company which was formed in 1956 by two cousins. In 1962 it became a public limited company as itvgrew in leaps and bounds.

Due to failure to adjust to technological changes, heavy indebtedness and a downgraded credit rating, Payless filed for bankruptcy in April 2017, hence liquidation of some of its many stores. The company finally completed its process of restructuring and continued with its operations.

In 2019, it filed for another bankruptcy and this time the public thought it would eventually lead to a voluntary winding up. The company seems to have ,however survived and has big plans to grow.

REQUIRED

a.Explain what must have taken place in 1961 for Payless to be called a public limited company from being a private limited company. Indicate the advantages that came with the new company status. (10marks)

b. Suppose Paless was a Botswana company, evaluate what would have been different if Payless had filed for voluntary winding up instead of a compulsory winding up. (10marks)