What do you understand by winding up?

What is winding up and its types?

Types of Winding Up

Voluntary Winding Up, which itself is of two kinds: Members’ Voluntary Winding Up. Creditor’s Voluntary Winding Up.

What do you understand by voluntary winding up of a company?

A voluntary liquidation is a self-imposed wind-up and dissolution of a company that has been approved by its shareholders. Such a decision will happen once a company’s leadership decides that the company has no reason to continue operating. It is not ordered by a court (not compulsory).

What do you understand by winding up subject to the supervision of court?

Voluntary winding up may be under the supervision of the Court. At any time after a company has passed a resolution for voluntary winding up, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision of the Court.

What is winding up by the tribunal?

Commencement of Winding Up of a Company by Tribunal under Companies Act 2013. … The winding-up of a company is a process in which assets of the company has to be sold in order to make the remaining payment.

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What are the reasons for winding up of the company?

In Members’ voluntary winding-up there is no need to have creditors’ meeting. But, in the case of creditors’ voluntary winding-up, a meeting of the creditors must be called immediately after the meeting of the members. Liquidator, in the case of members’ winding-up, is appointed by the members.

What is winding up of company explain the compulsory winding up by the tribunal?

As per provisions of the Companies Act, 2013, compulsory winding up is possible only under the following circumstances: When the company has passed the special resolution effecting that the company be wound up by the Court or Tribunal. Has acted against the interest of the sovereignty and integrity of the country.

Who can order such winding up?

The order for the winding up of a company by the Tribunal shall, within 14days of the date of the order be advertised by the petitioner in a newspaper in the English language and a newspaper in vernacular language widely circulating in the State or the Union territory where the registered office of the company is …

Who can apply for winding up?

Who Can File Petition For Winding Up. 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.