Winding Up
1. Meaning of Winding up or liquidation
The winding up or liquidation of a company means the termination of the company by stopping its business, collecting its assets and distributing creditors and shareholders, in the manner laid down in the Act.
2. Mode Of Winding Up
According to section 234, the winding up of a company), may be done in any three ways: one of the following
(I) Compulsory winding up by the Court
(ii) Voluntary winding up b), the members or by creditors
(iii) Voluntary winding up under the supervision of the court.
2.1 Compulsory Winding Up By the Court
Section 241 states the following circumstances under which a company may be wound up by
The Court: * lf the company has by special resolution resolved that the company be wound up by the Court; or * lf default is made in filing the statutory report or in holding the statutory meeting; or * lf the company does not commence its business within a year from its incorporation, or suspends its business for a whole year; or * lf the number of members is reduced, in the case of a private company below two, or, in the case of any other company, below seven; or * lf the company is unable to pay its debts; or * If the Court is of opinion that it is just and equitable that the company should be wound-up
3.2 Voluntary Winding Up
As mentioned in section 286, a company may be wound up voluntarily under the following Circumstances:
(a) When the period, it any, fixed for the duration of the company by the articles expires, or the event, if any occurs, on the occurrence of which articles provide that the company is to be dissolved and the company in general meeting has passed a resolution requiring the company to be wound up voluntarily;
(b) If the company resolves by special resolution that the company voluntarily;
(c) If the company, resolves by extraordinary resolution to the effect that it cannot by reason of its liabilities continue its business, and that
The winding up or liquidation of a company means the termination of the company by stopping its business, collecting its assets and distributing creditors and shareholders, in the manner laid down in the Act.
2. Mode Of Winding Up
According to section 234, the winding up of a company), may be done in any three ways: one of the following
(I) Compulsory winding up by the Court
(ii) Voluntary winding up b), the members or by creditors
(iii) Voluntary winding up under the supervision of the court.
2.1 Compulsory Winding Up By the Court
Section 241 states the following circumstances under which a company may be wound up by
The Court: * lf the company has by special resolution resolved that the company be wound up by the Court; or * lf default is made in filing the statutory report or in holding the statutory meeting; or * lf the company does not commence its business within a year from its incorporation, or suspends its business for a whole year; or * lf the number of members is reduced, in the case of a private company below two, or, in the case of any other company, below seven; or * lf the company is unable to pay its debts; or * If the Court is of opinion that it is just and equitable that the company should be wound-up
3.2 Voluntary Winding Up
As mentioned in section 286, a company may be wound up voluntarily under the following Circumstances:
(a) When the period, it any, fixed for the duration of the company by the articles expires, or the event, if any occurs, on the occurrence of which articles provide that the company is to be dissolved and the company in general meeting has passed a resolution requiring the company to be wound up voluntarily;
(b) If the company resolves by special resolution that the company voluntarily;
(c) If the company, resolves by extraordinary resolution to the effect that it cannot by reason of its liabilities continue its business, and that