Under what circumstances a company can be wound up?
Circumstances in which a Company May Be Wound Up
- A special resolution is passed by the company that the company shall be wound up by the tribunal.
- Failure of the company in reporting a statutory report at the registrar’s office.
- Non-commencement of the company in business within one year of incorporation.
When can a company be wound up?
If the Company has made a default in filing with the Registrar its financial statements or annual returns for immediately preceding five consecutive financial fiscal years; or. If the Tribunal is of the opinion that it is just and equitable that the Company should be wound up.
What is a resolution for winding up?
A ‘winding up resolution’ leads to the liquidation of company assets by a licensed Insolvency Practitioner, with the intention of either repaying creditors or distributing the money realised to shareholders.
What does MCA mean in company law?
The Ministry of Corporate Affairs (MCA) is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, The Limited Liability Partnership Act, 2008 & other allied Acts, rules & regulations framed mainly for regulating the functioning of the corporate sector in accordance with law.
Who can apply to wind up a company?
Under s. 124(1) IRDA, the creditor, amongst others, are entitled to present a winding-up petition. By far the vast majority of winding up applications are made by creditors seeking to enforce the payment of undisputed debts.
What is wound up in business?
Winding up is the process of dissolving a company. While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
Who Cannot apply for winding up of a company?
Any creditor or creditors of the company may present a petition to the Court for winding up, alleging that the company is unable to pay the debts of the creditor in the manner specified in section 433 or 434.
Can a company be wound up by Nclt?
Under Companies Act, 2020 a Company may be wound up by the tribunal under Section 272 of Companies Act, 2013. On Companies (amendment) Act, 2002 NCLT and NCLAT were formed.
Can you wind up a company?
Winding up a company. Liquidating a company is also called winding up a company. The process is different depending on whether it’s solvent or insolvent. During business liquidation, a company’s assets will be used to pay off its debts and leftover money will go to the shareholders.
Can a receiver wind up a company?
Receivership does not affect the legal existence of the company. The directors continue to hold office, but their powers depend on the powers of the receiver and the extent of the assets over which the receiver is appointed.
If there has been a breakdown in mutual trust and confidence which is impeding the management of a company, a shareholder may petition to have the company wound up.
What is company resolution?
Definition of a Company Resolution
Resolutions are written document or statement that records a decision or action discussed and approved during an annual general meeting (AGM) or extraordinary general meeting (EGM).
What is resolution under Companies Act 2013?
As per the provisions of Section 114 (1) of the Companies Act 2013, “A resolution shall be an ordinary resolution if the notice required under this Act has been duly given and it is required to be passed by the votes cast, whether on a show of hands, or electronically or on a poll, as the case may be, in favor of the …
What are the types of resolution?
What are the different Kinds of Resolutions?
- Ordinary Resolution : An ordinary resolution is one which can be passed by a simple majority. …
- Special Resolution : …
- Resolution requiring Special Notice : …
- Circulation of Member’s Resolution. …
- Registration of Resolutions and Agreements.