What are the conditions for voluntary winding up?
Voluntary Winding Up
A company can be wound up voluntarily in the situations mentioned below: The company passes a resolution in its general meeting upon the expiry of the duration for which it is formed, or upon the occurrence of any event in respect of which the articles provide for its dissolution.
What are the modes and grounds of winding up?
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 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 various grounds on which the company can be wound up?
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:
Under what circumstances a company can be wound 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.
Which of the following are grounds for compulsory winding up?
Grounds for Compulsory Winding-up (Sec. 433):
- A company may be wound-up by the Court under the following cases:
- (i) Special Resolution of the Company:
- (ii) Default:
- (iii) Not commencing or suspending the Company:
- (iv) Reduction of Members:
- (v) Inability to pay Debts:
- (vi) The Just and Equitable Clause:
What are the types of members voluntary winding up?
Voluntary winding up is of two types. They are Members Voluntary winding up, and Creditors’ Voluntary Winding up.
What is voluntary winding up and its effects?
In the case of a voluntary winding up, the company shall from the commencement of the winding up cease to carry on its business except as far as required for the beneficial winding up of its business: Provided that the corporate state and corporate powers of the company shall continue until it is dissolved.
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.
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.