You asked: Who can voluntarily wind up a company?

Who can apply for voluntary winding up of a company?

Ans: A corporate person who intends to liquidate itself voluntarily and has not committed any default can initiate the voluntary winding up.

Who can initiate voluntary liquidation?

Section 59 under Chapter V of Part II of Insolvency and Bankruptcy Code, 2016 (Code) read with the IBBI (Voluntary Liquidation Process) Regulations, 2017 (Voluntary Liquidation Regulations) provides that a Corporate Person (CP) may initiate voluntary liquidation proceedings if two conditions are met: (a) the CP has no …

How can members wind up the company voluntarily?

Procedures for Voluntary Winding Up of Company by Members

  1. Holding of the General Meeting.
  2. Appointment of Liquidators.
  3. Notice to the Registrar.
  4. Powers of the Board etc.
  5. Reconstruction in Winding up.
  6. Holding of the General Meeting at the end of the First Year.
  7. Final Meeting of the Members.

When can a company be voluntarily wound up?

If two thirds in value of creditors of the company are of the opinion that it is in the interest of all parties to wind up the company, then the company can be wound up voluntarily. If the company cannot meet all its liabilities on winding up, then the Company must be wound up by a Tribunal.

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Can a shareholder wind up a company?

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.

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.

Who may be appointed as director?

Only an Individual (living person) can be appointed as a Director in a Company. A body corporate or business entity cannot be appointed as a Director in a Company. A company can have a maximum of fifteen Directors – it can be increased further by passing a special resolution.

Who are the persons who can file petition for winding up of the company Mcq?

As per Section 272 , the following are the persons who can file a petition for winding up of the company. The Company. Any Contributory or Contributories. The Registrar with Approval Central Government and is given an opportunity of Being Heard.

When can a company go into voluntary liquidation?

Voluntary liquidation is when a company decides to dissolve itself on its own terms, as approved by the shareholders of the company. The decision usually occurs when a company decides that it has no reason for operating anymore, or if it is not feasible to operate anymore.

Is voluntary liquidation the same as insolvency?

The difference between liquidation and insolvency

The process itself is almost identical to a Creditors Voluntary Liquidation (where the company is insolvent), the key difference being that the director(s) swear a declaration of solvency, confirming that the company is solvent and able to pay all of its debts in full.

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Can a company go into voluntary liquidation?

A company can only be put into voluntary liquidation by its shareholders. The liquidator appointed must be an authorised insolvency practitioner. The liquidation begins from the time the resolution to wind up is passed. months; and • include an up-to-date statement of the company’s assets and liabilities.