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Winding Up <ul><li>Winding up/liquidation represents the last stage in company’s life. </li></ul><ul><li>It is a proceedin...
Modes of Winding Up <ul><li>There are two modes of winding up of a company. </li></ul><ul><li>Winding up by the Tribunal <...
Winding Up by Tribunal <ul><li>The is also known as compulsory winding up and a company may be wound up in the following c...
Petition <ul><li>An application to the Tribunal for the winding up of a company is made by a petition . This may be presen...
Commencement of Winding Up <ul><li>Advertisement of petition </li></ul><ul><li>Powers Tribunal </li></ul><ul><li>Consequen...
Voluntary Winding Up <ul><li>Voluntary winding up means winding up by the members or creditors of a company without interf...
Types of Voluntary Winding Up <ul><li>A voluntary winding up may be a: </li></ul><ul><li>Members’ voluntary winding up </l...
Consequences of Winding Up <ul><li>Consequences as to shareholders/members </li></ul><ul><li>Consequences as to creditors ...
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Winding up

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Winding up

  1. 1. Winding Up <ul><li>Winding up/liquidation represents the last stage in company’s life. </li></ul><ul><li>It is a proceeding by which a company is dissolved. </li></ul><ul><li>The company’s assets are disposed of , the debts are paid off out of the realised assets , and the surplus , if any is then distributed among the members in proportion to their holdings in the company </li></ul>
  2. 2. Modes of Winding Up <ul><li>There are two modes of winding up of a company. </li></ul><ul><li>Winding up by the Tribunal </li></ul><ul><li>Voluntary winding up which may be </li></ul><ul><li>(a) members’ voluntary winding up OR </li></ul><ul><li>(b) creditors’ voluntary winding up </li></ul>
  3. 3. Winding Up by Tribunal <ul><li>The is also known as compulsory winding up and a company may be wound up in the following cases. </li></ul><ul><li>Special resolution of the company </li></ul><ul><li>Default in delivering the statutory report to the Registrar </li></ul><ul><li>Failure to commence/suspension of business </li></ul><ul><li>Reduction in membership </li></ul><ul><li>Inability to pay its debts </li></ul><ul><li>Just and equitable </li></ul>
  4. 4. Petition <ul><li>An application to the Tribunal for the winding up of a company is made by a petition . This may be presented in following cases: </li></ul><ul><li>Petition by the company </li></ul><ul><li>Petition by any creditor/creditors </li></ul><ul><li>Petition by any contributory/contributories </li></ul><ul><li>Petition by Registrar </li></ul><ul><li>Petition by central Government </li></ul>
  5. 5. Commencement of Winding Up <ul><li>Advertisement of petition </li></ul><ul><li>Powers Tribunal </li></ul><ul><li>Consequences of winding up order </li></ul><ul><li>Procedure of winding up by the Tribunal </li></ul><ul><li>Committee of inspection </li></ul><ul><li>Dissolution of Company </li></ul><ul><li>Contributory </li></ul>
  6. 6. Voluntary Winding Up <ul><li>Voluntary winding up means winding up by the members or creditors of a company without interference by the Tribunal. </li></ul><ul><li>A company may be wound up voluntarily: </li></ul><ul><li>By passing an ordinary resolution </li></ul><ul><li>By passing a special resolution </li></ul><ul><li>Commencement of voluntary winding up </li></ul><ul><li>Advertisement of resolution </li></ul>
  7. 7. Types of Voluntary Winding Up <ul><li>A voluntary winding up may be a: </li></ul><ul><li>Members’ voluntary winding up </li></ul><ul><li>Creditors’ voluntary winding up </li></ul><ul><li>members’ voluntary winding up </li></ul><ul><li>Declaration of solvency </li></ul><ul><li>Provisions applicable </li></ul><ul><li>Creditors’ voluntary winding up </li></ul><ul><li>Meeting of creditors </li></ul><ul><li>Notice of resolution to be given to Registrar </li></ul><ul><li>Appointment of liquidator </li></ul><ul><li>Appointment of committee of inspection </li></ul><ul><li>Liquidator’s remuneration </li></ul><ul><li>Board’s power to cease on appointment of liquidator </li></ul><ul><li>Power to fill vacancy in office of liquidator </li></ul><ul><li>Duty of liquidator to call meeting at the end of each year </li></ul><ul><li>Final meeting and dissolution </li></ul>
  8. 8. Consequences of Winding Up <ul><li>Consequences as to shareholders/members </li></ul><ul><li>Consequences as to creditors </li></ul><ul><li>Preferential payments </li></ul><ul><li>Consequences as to servants and officers </li></ul><ul><li>Consequences as to proceedings against the company </li></ul><ul><li>Consequences as to costs </li></ul>

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