Winding up
تحلیل / وائنڈنگ اپ
Corporate
Winding up is the legal process of ending a company's existence by selling its assets, paying its debts and distributing what remains.
What does Winding up mean in plain words?
A company can be wound up by the court, voluntarily, or under the court's supervision. The court is the Company Bench of a High Court. A company is treated as unable to pay its debts if a creditor owed more than Rs 100,000 serves a written demand and the company does not pay or secure the sum within 30 days. A liquidator is then appointed to take control and distribute the assets.
When will I hear Winding up?
A creditor petitioned the High Court to wind up the company for non-payment.
Which law covers Winding up?
Sections 293, 301, 302 and 304, Companies Act 2017