When the winding up is brought about by the company itself is called as?
Broadly speaking, a company can be wound up in one of two ways: A Court can compulsorily wind up a company. The shareholders or the creditors of the company can themselves apply to wind up the company in proceedings known as “voluntary winding up”.
What is the process of winding up of a company?
Winding up is the process of dissolving a company. While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
What does it mean to wind up a company?
Winding up is a synonym for closing, but usually meaning closing as the result of insolvency. So to ‘wind up’ a company means to follow legal due process for shutting it down, usually via liquidation.
What do you mean by voluntary winding up?
Voluntary Winding takes place when a company becomes insolvent and is unable to discharge its liabilities. To carry out voluntary winding up of private limited company procedure, a winding up a meeting need to be called where a resolution is passed to carry out the winding up procedure of the company.
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.
Who conducts the winding up proceedings of a company?
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.
What are the kinds of winding up of the company?
The three modes of winding up are (a) Winding Up by the National Company Law Tribunal (the Tribunal) (b) Voluntary Winding Up under section 59 of the Code; (c) the ‘Fast Track Exit Scheme’ applicable to defunct companies under section 248 of the Act.
What are winding up proceedings?
A winding up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money (although others can also petition). … This is an expensive option for creditors, and is considered to be a last resort, so it is only used when all other approaches to retrieve the debt have failed.
What do you understand by winding up of a company Describe briefly the different modes of winding up?
A company can be wound up in three ways : Compulsory winding up by the Court; Voluntary winding up : (i) Members’ voluntary winding up; (ii) Creditors’ voluntary winding up; Voluntary winding up subject to the supervision of the Court [Sec.
What does winding you up mean?
Definition. to tease or annoy. You’re joking. Come on, you’re just winding me up.
Which winding up of a company by an order of the is known as compulsory winding up?
In case of Compulsory winding up
The winding up of a company by the order of court is called compulsory winding up. Section 433 of the Act, 1956 envisaged the following circumstances under which the affairs of a company wound up by the Tribunal: 1.