Winding up/Closure of a Co.
Winding up of a company is the stage, where company ceases to exist. It is a process by which life of a company is brought to an end and the business of company is wound up. All the assets of the company are sold, and the proceedings collected are used to discharge the liabilities on a priority basis. An administrator, called the liquidator, is appointed and he takes control of the company, collects its assets, pays debts and finally distributes any surplus among the members in accordance with their rights. At the end of winding up, the company will have no assets or liabilities. When the affairs of a company are completely wound up, the dissolution of the company takes place. On dissolution, the company's name is struck off from the register of the companies and its legal personality as a corporation comes to an end.
Modes of winding up
Under Section 270 the methods of winding up are:
- Winding up by the tribunal
- Voluntary winding up
Following persons can apply to the court, for petition for winding up:
- The company;
- Any contributory or contributories;
- All or any of the persons specified in clauses (a) and (b);
- The Registrar;
- Any person authorised by the Central Government in that behalf; or
- In a case falling under clause (b) of section 271, by the Central Government or a State Government.