When would a Court only supervise a winding up process?
Section 316-321 provide for winding up subject to supervision of court. When a company has by special or extraordinary resolved to wind up voluntarily the court may make an order that the voluntary winding up shall continue but subject to supervision of court and such terms as the court thinks just.
What is the procedure of winding up by Court?
Compulsory winding up takes place when a creditor of an insolvent company asks the court for a wind up. If the company goes into liquidation, the court of law appoints a liquidator for the liquidation. The primary objective of the liquidator is to raise as much funds as needed to pay the creditors.
When can Court order winding up of a company?
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. The company has defaulted in filing its financial statement or annual returns for five consecutive financial years.
What are the modes 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.
Who can apply for winding up?
Who Can File Petition For Winding Up. Any creditor or creditors of the company may present a petition to the Court for winding up, alleging that the company is unable to pay the debts of the creditor in the manner specified in section 433 or 434.
What are the grounds for compulsory winding 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:
How long does winding up take?
It generally takes around 28 days in total for a winding up order to take effect. Once you are in receipt of a winding up petition, you need to act quickly to save your company.
What is winding up explain its causes and modes?
The modes of winding up may be discussed under the following three heads, namely:- 1. Compulsory winding up by the court. 2. Voluntary winding up without the intervention of the court. … Voluntary winding up with the intervention of the court i.e., under the supervision of the court.
Which one of the following is a type of winding up?
Modes of Winding Up
The Act, 1956 provides for the following three types of winding up: Winding up by the order of the Tribunal or Compulsory winding up; (Sec 433 to Sec 483) Voluntary winding up; (Sec 484 to Sec 520) Subject to the supervision of the Court.