Voluntary winding up is an easier process than court-ordered winding up where the company and creditors settle affairs without court involvement. One or more liquidators are appointed by the company to wind up affairs and distribute assets. The court has powers to appoint or remove liquidators and determine remuneration. There are two kinds of voluntary winding up: members' and creditors'. Provisions on preferential payments, floating charges, and disclaimer of onerous property apply. When voluntary winding up commences, the company must stop operating except as needed to wind up.

1. KOUSHIK SARKAR
ID NO.13ATUA016
BBA 2nd year

2. VOLUNTARY WINDING UP:-
The companies are usually wound up voluntarily
as it is an easier process of winding up. In
voluntary winding up the company and its
creditors are left to settle their affairs without
going to a Court, although they may apply to the
Court for directions or orders, as and when
necessary. One or more liquidators are to be
appointed by the company in general meeting for
the purpose of winding up the affairs and
distributing the assets of the company.

3. THE COURT IS VESTED WITH THE
FOLLOWING POWERS IN VOLUNTARY
WINDING UP
 To appoint the Official Liquidator or any other
person as liquidator where no liquidator is
acting.
 To remove the liquidator and appoint the
Official Liquidator or any other person as
liquidator on justifiable cause being shown
 To determine the remunerations of liquidator
when the Official Liquidator is appointed as a
liquidator

4. KINDS OF VOLUNTARY WINDING UP:-
 Members’ voluntary winding up;
 Creditors’ voluntary winding up.

5. PROVISIONS APPLICABLE TO VOLUNTARY
WINDING UP:-
 Overriding preferential payments
 Preferential payments
 Effect of floating charge
 Disclaimer of onerous property

6. EFFECTS OF VOLUNTARY WINDING UP:-
In the case of a voluntary winding up , the
company shall from the commencement of
the winding up cease to carry on it’s
business except as far required for the
beneficial winding up of its business

7. COMMENCEMENT OF VOLUNTARY
WINDING UP:-
A voluntary winding up shall be deemed to
commence on the date of passing of the
resolution for voluntary winding up .