What are the circumstances of winding up?
Circumstances in which a Company May Be Wound Up
A special resolution is passed by the company that the company shall be wound up by the tribunal. Failure of the company in reporting a statutory report at the registrar’s office. Non-commencement of the company in business within one year of incorporation.
In what circumstances can a company be wound up voluntarily under the Act?
The Sections 457 of the Act provides two instances by which a voluntary winding up could occur, with the first being when the period, if any, fixed by the articles of the company stipulates the duration the company is to exist and same subsequently expires, or if the article base the existence of the company on some …
What are grounds of compulsory winding up under Companies Act 2013?
As per provisions of the Companies Act, 2013, compulsory winding up is possible only under the following circumstances: When the company has passed the special resolution effecting that the company be wound up by the Court or Tribunal. Has acted against the interest of the sovereignty and integrity of the country.
What are the grounds on which a court can order winding up of a company?
Section 433(e) of the Companies Act, 1956 provides that in cases where the company is unable to pay its debts the court can order winding up. The expression ‘unable to pay its debts’ has to be taken in the commercial sense of being unable to meet current demands though the company may be otherwise solvent6.
What are the various grounds on which the company would be wound up under the Companies Act 2013?
The company would be wound up if Tribunal is of the opinion that it is just and equitable that it should no longer remain in function. With the passing of Insolvency and Bankruptcy Code, grounds of inability to pay debt and winding up under have been deleted.
On what grounds tribunal can pass order about compulsory winding up?
In case the company does not pay the debts, the debt of the creditor exceeding Rs 1 lakhs is due and unpaid by the company within 21 days from the due date, or any execution decree is passed in favour of the creditor or tribunal has a reason that company will not pay off any debts then company would be liable for …
What are the conditions for voluntary winding 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.
What is the procedure for voluntary winding up of a company?
Voluntary Liquidation or Voluntary Winding up of a company
- Step 1: Declaration of Solvency by Board / Designated Partners. …
- Step 2: Identify an Insolvency Professional as Liquidator. …
- Step 3: Convene Board Meeting. …
- Step 4: Convene General Meeting of Shareholders. …
- Step 5: Filings with Registrar of Companies and IBBI.
Who can apply for voluntary winding up?
Ans: A corporate person who intends to liquidate itself voluntarily and has not committed any default can initiate the voluntary winding up.
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 are equitable grounds?
Filters. Equitable grounds for recovery is defined as situations where it is believed to be fair to allow someone to recover damages in a court case.
Which of the following are grounds of compulsory winding up?
Failure to hold Statutory Meeting: If the company fails to hold the Statutory Meeting and fails to file the Statutory Report, the Registrar can present a petition for an order of winding up.
What are the costs of voluntary winding up?
All costs, charges and expenses properly incurred in the winding up, including the fee of the Company Liquidator, shall, subject to the rights of secured creditors, if any, be payable out of the assets of the company in priority to all other claims.