What are the various modes of winding up of a company under companies Act 2013?
Modes Of Winding Up Of A Company And Their Procedure
- 1) i. SICK COMPANY:
- 2) ii. SPECIAL RESOLUTION:
- 3) iii. ACTS AGAINST STATE:
- 4) iv. FRAUDULENT CONDUCT OF AFFAIRS:
- 5) v. DEFAULT IN FILING FINANCIAL STATEMENTS WITH REGISTRAR:
- 6) vi. JUST AND EQUITABLE TO WOUND UP :
What do you mean by winding up explain the various modes of winding up?
MEANING: Winding up is the process of closing down the legal existence of a company or limited liability partnership. During this process, the assets of the company are realized and liabilities and debts are paid off and also the surplus is distributed among the shareholders.
What is winding up of a company under companies Act?
Winding Up (Under Companies Act, 2013 and Insolvency And Bankruptcy Code, 2016) Winding up means a proceeding by which a company is dissolved. The assets are disposed, the liabilities are paid, and the surplus, if any, is distributed among the shareholders/ members in proportion to their shareholding in the company.
What is voluntary winding up of a company?
A voluntary liquidation is a self-imposed wind-up and dissolution of a company that has been approved by its shareholders. Such a decision will happen once a company’s leadership decides that the company has no reason to continue operating. It is not ordered by a court (not compulsory).
What are the modes and consequences of winding up of a company?
The other consequences of winding-up by the Court are:
(a) Intimation to official liquidator and Registrar (Sec. 444); (b) Copy of Winding-up order to be filed with the Registrar; (c) Order for winding-up deemed to be notice of discharge [Sec.
What is the meaning of winding up of a company?
The winding up or liquidation of a company is the process by which a company’s assets are collected and sold in order to pay its debts. … When the winding up has been completed, the company is formally dissolved and it ceases to exist. Broadly speaking, a company can be wound up in one of two ways.
What is meant by winding up of a company what are the modes and grounds of winding up?
“Winding up is a means by which the dissolution of a company is brought about and its assets realised and applied in payment of its debts, and after satisfaction of the debts, the balance, if any, remaining is paid back to the members in proportion to the contribution made by them to the capital of the company.”1 “The …
What is the process of winding up in company law?
What Is Winding Up? 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.