Company Winding Up

(WINDING-UP)

2.1Introduction

The depot steer up of a company may be defined as the proceedings by which a company is dissolved (i.e. the animateness of a company is regulate to an exterminate). Thus, the winding up is the deal of putting an end to the life of the company. And during this process, the assets of the company are disposed of, the debts of the company are gainful off out of the realized assets or from the contributories and if any tautologic is left, it is distributed among the members in proportion to their shareholding in the company. The winding up of the company is also called the liquidation of the company. The process of winding up begins aft(prenominal) the Court passes the order for winding up or a resolution is passed for voluntary winding up. The company is dissolved subsequently completion of the winding up proceedings. On the dissolution, the company ceases to exist. So, the efficacious cognitive operation by which the existence of an incorporated company is brought to an end is known as winding up
Winding-Up is also a term given to the process of closing a business, so a company may be dissolved by the process of winding-up or liquidation. This process involves the collection of the companys assets, wages of its debts and distribution of the surplus, if any to the creditors.



The substantive law govern the winding-up of companies is pitch in Part X of the Companies Act 1965 and the Companies (Winding-Up) Rules 1972 to regulates the court procedure applicable to winding-up proceedings. A company winding-up may be each by the court or voluntary depending upon the state of solvency of the company. smart set means a company which is being wound up or against which proceedings to assume it wound up have been commenced.

2.2Liquidator

A person appointed to carry out the winding up of a company is called telephone receiver. If the winding up is with Court, the term used for such person is official liquidator. The duties of liquidator include larnting in and realizing the property of...If you want to get a full essay, order it on our website: Ordercustompaper.com



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