What is meant by winding up explain various methods of winding up?
“Winding up is a means by which the dissolution of a company is brought about and its assets are realised and applied in the payment of its debts. After satisfaction of the debts, the remaining balance, if any, is paid back to the members in proportion to the contribution made by them to the capital of the company.”
What is winding up of a company and explain its modes?
”Winding up of a company is the process whereby its life is ended and its property administered for the benefit of its creditors and members. … Thus winding up is the last stage in the life of a company. It means a proceeding by which a company is dissolved.
What are the types of winding up?
- Compulsory Winding Up under the order of the Court.
- Voluntary Winding Up, which itself is of two kinds: Members’ Voluntary Winding Up. Creditor’s Voluntary Winding Up.
What are the different kinds of winding up what are the reasons and consequences of winding up discuss?
The following are the grounds on which Tribunal can order winding up.
- (a) Special resolution- …
- (b) Acts against sovereignty- …
- (c) Default in submitting final statements to the registrar- …
- (d) Fraudulent conduct- …
- (e)”Just and equitable”- …
- (1) Deadlock: …
- (2) Loss of substratum: …
- (3) Oppression of minority:
What is winding 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 is liquidation and state the different modes of winding up?
Liquidation of company happens when company gets insolvent and is dissolved by legal procedure . In simple words, its liabilities are more than its assets. During liquidation, shareholders and creditors gets assets. … Liquidation may be either compulsory or Voluntary.
What are the various reasons of winding up of the company?
A company’s shareholders or partners may trigger a voluntary winding up, usually by the passage of a resolution. If the company is insolvent, the shareholders may trigger a winding-up to avoid bankruptcy and, in some cases, personal liability for the company’s debts.