Can a company opt for its winding up?

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 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:

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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What is the procedure for winding up of a company?

Procedure- Winding up of a Company

  1. Petition Filed for Winding up of a Company. …
  2. Statement of Affairs of the Company. …
  3. Advertisement. …
  4. Appointment of Provisional Liquidator. …
  5. Send notice to the Provisional Liquidator. …
  6. Winding up Order. …
  7. Custody of Property. …
  8. Affairs of the company.

Can directors wind up a company?

Alternatively you can choose to close your company by striking it off the Companies Register. For an insolvent company, directors can wind up their company through a creditors voluntary liquidation or a compulsory liquidation. Creditors can also apply to wind-up an insolvent company up through compulsory liquidation.

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.

What are the possible consequences of not winding up a business?

The consequences of not filing articles of dissolution include the accumulation of tax fees and penalties for failing to file. Penalties might be assessed even if your corporation was defunct and had no income or expenses to report.

Can a 50 Shareholder wind up a company?

It’s possible for a 50% shareholder to liquidate a company by presenting a winding up petition at court on ‘just and equitable’ grounds. The court then comes to a decision on the best way forward for the company, which may or may not be liquidation.

What are consequences of voluntary winding up of a company?

Consequences of Winding Up

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Winding up doesn’t take away the existence of the company completely. The company continues to exist as a corporate entity till its dissolution. All the ongoing business of the company is administered by the liquidator during the phase of liquidation.

Under which law does voluntary winding up now take place?

As per section 270 of the Companies Act, 2013 a company can be wound up either by a National Company Law Tribunal (“Tribunal”) or by way of voluntary winding up.

Who is allowed to initiate the voluntary dissolution process?

Depending upon the circumstances or the corporate bylaws, voluntary dissolution can be initiated by shareholder action, by action initiated by the board of directors, or where no directors are in place by the incorporators. Generally, the decision to dissolve a corporation rests with the corporation’s shareholders.

How can a limited company be wound up?

There are some ways to wind up the private limited company in India such as selling the company, mandatory closing up,closing the company voluntarily and closing the defunct company.

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.

How long does it take to wind up a company?

It generally takes around 28 days in total for a winding up order to take effect. Once you are in receipt of a winding up petition, you need to act quickly to save your company.

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