{"id":165,"date":"2020-04-30T14:42:26","date_gmt":"2020-04-30T13:42:26","guid":{"rendered":"http:\/\/vdtc.co.in\/?p=165"},"modified":"2020-04-30T14:42:27","modified_gmt":"2020-04-30T13:42:27","slug":"winding-up-the-companies","status":"publish","type":"post","link":"https:\/\/vdtc.co.in\/?p=165","title":{"rendered":"WINDING UP THE COMPANIES"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>Meaning of LIQUIDATION:<\/strong><\/h3>\n\n\n\n<p><strong>LIQUIDATION<\/strong> AND <strong>WINDING UP<\/strong> a company is the process whereby the company by itself is ended and its property is administered for the benefit of its members.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><strong>DIFFERENT MODES OF WINDING UP<\/strong><\/h3>\n\n\n\n<p class=\"has-text-align-center\"><strong>THE DIFFERENT MODES OF WINDING UP ARE AS UNDER :<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"956\" height=\"737\" src=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/1588252664772.png\" alt=\"\" class=\"wp-image-181\" srcset=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/1588252664772.png 956w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/1588252664772-300x231.png 300w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/1588252664772-768x592.png 768w\" sizes=\"(max-width: 956px) 100vw, 956px\" \/><\/figure>\n\n\n\n<h3 class=\"has-text-align-left wp-block-heading\"><strong>COMPULSORY WINDING UP U\/S 433 TO 465<\/strong><\/h3>\n\n\n\n<p>As per Section 433 of The Companies Act, an order may be passed by the tribunal for compulsory winding up of a company in the following circumstances:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Where the company has passed a <strong>special resolution <\/strong>resolving that it shall be wound up in court.<\/li><li>Where&nbsp; a company has made a default in holding a meeting&nbsp; or failed to deliver the statutory report to the Registrar;<\/li><li>Where the company failed to<strong> commence its business within 1 year <\/strong>of its incorporation or suspends its business for a whole year;<\/li><li>Where&nbsp; the number of <strong>members\/shareholders<\/strong> is reduced below 7 in case of a public company or below 2 in case of a private company;<\/li><li>the company is <strong>not a position to pay its<\/strong> debts;<\/li><li>It is <strong>just and equitable<\/strong> in the opinion of the Tribunal to wind up the company.<\/li><li>Where a default has been made by a&nbsp; company in filing its Balance Sheet and Loss Account <em>or <\/em>annual return with the registrar, for any five consecutive financial years.<\/li><li>if the company has acted against the interest of the sovereignty and integrity of the security of the state, friendly relations with foreign States, public order, decency <em>on<\/em><\/li><li>The tribunal is of the opinion that the company should be wound up under the circumstance specified in section 424(g).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>VOLUNTARY WINDING UP U\/S 484 TO 521<\/strong><\/h3>\n\n\n\n<p>&nbsp;Companies may be wound up voluntarily:<\/p>\n\n\n\n<p>(a) Bypassing, in the general meeting, an <strong>ordinary resolution<\/strong>.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>When the period i.e. the duration for which the company was formed, has expired<\/li><li>When the event on which the termination of the existence of the company was dependent, has occurred.<\/li><\/ol>\n\n\n\n<p>(b) Bypassing <strong>special resolution <\/strong>to wind up voluntarily<\/p>\n\n\n\n<p>Basically Voluntary Winding up may be of two types:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"359\" src=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/Screenshot-217-1024x359.png\" alt=\"\" class=\"wp-image-185\" srcset=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/Screenshot-217-1024x359.png 1024w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/Screenshot-217-300x105.png 300w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/Screenshot-217-768x269.png 768w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/04\/Screenshot-217.png 1239w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>VOLUNTARY WINDING&nbsp;<\/strong><\/h3>\n\n\n\n<p><strong>Commencement of voluntary winding up<\/strong>.\u2014 On the date of passing of the resolution, a voluntary winding up shall be deemed to commence under 304.<\/p>\n\n\n\n<p><strong>Effect of voluntary winding up<\/strong>.\u2014 The company shall cease to carry on its business from the date of commencement of the winding-up, except it is required for the healthy winding up of its business. The company shall continue to enjoy its corporate state and corporate powers until it is dissolved.<\/p>\n\n\n\n<p><strong>Appointment of committees<\/strong>.\u2014 A&nbsp; committee as considered appropriate may be appointed by the company in its meeting or where there are creditors then in creditors meeting, to supervise the voluntary liquidation and to provide assistance to the Company\u2019s Liquidator in discharging his functions.<\/p>\n\n\n\n<p><strong>Company Liquidator to submit a report on the progress of winding up.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Meaning of LIQUIDATION: LIQUIDATION AND WINDING UP a company is the process whereby the company by itself is ended and its property is administered for the benefit of its members. DIFFERENT MODES OF WINDING UP THE DIFFERENT MODES OF WINDING UP ARE AS UNDER : COMPULSORY WINDING UP U\/S 433 TO 465 As per Section<\/p>\n<p><span class=\"more-wrapper\"><a class=\"more-link button\" href=\"https:\/\/vdtc.co.in\/?p=165\">Continue reading<\/a><\/span><\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-165","post","type-post","status-publish","format-standard","hentry","category-company-liquidation"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/165"}],"collection":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=165"}],"version-history":[{"count":6,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/165\/revisions"}],"predecessor-version":[{"id":186,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/165\/revisions\/186"}],"wp:attachment":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}