Winding up of Company: Understanding the Methods and Process
The process of terminating the legal existence of a company, as mandated by law, is referred to as the winding up of a company . There are several methods through which a company can be wound up: Compulsory winding up by the court Voluntary winding up Winding up under court supervision COMPULSORY WINDING UP BY THE COURT: A court can order the winding up of a company under the following circumstances: If a special resolution has been passed, seek court intervention for winding up If the company is unable to settle its debts If the company fails to submit the statutory report to the registrar VOLUNTARY WINDING UP: A company can opt for voluntary winding up in the following situations: The company may choose to wind up upon the expiry of a predetermined period It may decide to wind up upon the occurrence of a specific event that triggers dissolution If the company passes a special resolution to wind up WINDING UP UNDER THE SUPERVISION OF A COURT: In certain cases, a court ma...