What is meant by winding up of company by Court?
The term ‘winding up’ of a company may be defined as the proceedings by which a company is dissolved (i.e. the life of a company is put to an end). … The process of winding up begins after the Court passes the order for winding up or a resolution is passed for voluntary winding up.
What is the procedure of winding up by Court?
Compulsory winding up takes place when a creditor of an insolvent company asks the court for a wind up. If the company goes into liquidation, the court of law appoints a liquidator for the liquidation. The primary objective of the liquidator is to raise as much funds as needed to pay the creditors.
When can Court order winding up of a company?
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. The company has defaulted in filing its financial statement or annual returns for five consecutive financial years.
What are the grounds for winding up a company?
6 Grounds on which a Court can Order a Winding up of a Company in…
- Passing of special resolution for the winding up: …
- Default in holding statutory meeting: …
- Failure to commence business: …
- Reduction in membership: …
- Inability to pay debts: …
- Just and equitable:
Who may 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.
What are the types of winding up?
- Compulsory Winding Up under the order of the Court.
- Voluntary Winding Up, which itself is of two kinds: Members’ Voluntary Winding Up. Creditor’s Voluntary Winding Up.
Under which section ways of winding up of company is mentioned?
A summary procedure for winding up of companies is provided under section 361 of the Companies Act, 2013. The proceedings for liquidation are carried out by an Official Liquidator appointed by the Central Government.
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 …
What are the consequences of winding up order made by the tribunal under the Companies Act 2013?
1. When the order of winding up is made, and the provisional appointment is made, immediate intimation is provided to the company liquidator, provisional liquidator, and Registrar. 2. After such an order is made, the company is obligated to submit a certified copy of the order within 30 days to the registrar.
What are the grounds for winding up of a company in what situations can the board pass a resolution to wind up?
The company would be wound up if Tribunal is of the opinion that it is just and equitable that it should no longer remain in function. With the passing of Insolvency and Bankruptcy Code, grounds of inability to pay debt and winding up under have been deleted.