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What is Winding Up?
A company may wind up its affairs if it is unable to carry on its business, or it is not able to meet the financial obligation, etc. A company shall be voluntary wound up by itself or can opt for a modes given below.
Winding up by Tribunal: there are certain circumstances where the company shall be wound up by the Tribunal:
A company may, on a petition under section 272, be wound up by the tribunal:
What is the meaning of unable to pay its debts means?
Who can file the petition?
A petition to the tribunal for the winding up of Company shall be presented by-
What are the powers of Tribunal?
The powers of tribunal are that on receipt of a petition for winding up under Section 272 of the Companies Act, 2013 may pass any of the orders such as:
Voluntary Winding up of a Company
Once the application is filled and submitted, then it shall be forwarded to the proper officer who will then examine the application and the documents attached.
The winding up can be done by the members of the Company by:
Passing a special resolution – the company passes a resolution requiring the company to be wound up by passing a special resolution, voluntarily on expiry of duration as under the articles of association or occurrence of any event in respect it should be dissolved.
Steps under Voluntary Winding up
The companies are given life through the ensouling of incorporation and are vanished through the process of winding up or liquidation which ends in dissolution of company. The winding up is a process entailing differing actions to liquify the assets of the company and accounting for the assets to the persons entitled for them as per their order priority set in the law. During this process directors are side lined and liquidator/official receiver takes control into his hands, and acting in accordance with the law to give an end to the artificial legal personality.
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