Points to be covered• Meaning of winding up• Modes of winding up• Who can apply for winding up• Procedure for winding up• Consequences of winding up
• Winding up means the termination of the legal existence of a company by stopping its business, collecting its assets and distributing the assets among creditors and shareholders, in the manner laid down in the act. ACCORDING TO COMPANIES ACT 1956
Three modes of winding up :-(a)Compulsory winding up by the court(b)Voluntary winding up by the member themselves or by the creditors.(c)Voluntary winding up under the supervision of the court.
Takes place when court directs the company to wound up. Following circumstances of wounding up by order of court—(a)Special resolution of the company.(b)Default(c)Suspending the company(d)Reduction of court(e)Inability to pay debts(f)The just and equitable clause— E.g.--loss, loss of substratum of the company, deadlock in management,fradulent object,misconduct & misappropriation
Voluntary winding up sec 484• Means winding up by the member themselves without the intervention of court.• Following circumstances