Meaning, Petition & Process- Winding Up Of A Company
The process of setting up a business and winding up is a process of law. In the modern era, setting up business/ incorporation has been simplified by way of ease of doing business.
In light of the Companies Act, 2013, winding up is a process of dissolving the legal existence of the company. In the practical scenario under the earlier Companies Act, winding up of a company takes years to complete and was a tedious process. This article covers the overview of the winding up and modes as prescribed under the Companies Act, 2013 and Insolvency & Bankruptcy Code, 2016. In this article we will discuss the Process of Winding up a Company in accordance with the syllabus of Setting up of Business Entities and Closure – SBEC CS EXECUTIVE.
MEANING OF WINDING UP
Winding up is the process by which the assets of the company are saved and the affairs of the company are wound up. Even during the process of winding up the company continues to be a legal person.
As far as provisions under the Companies Act, 2013, it provides extensive coverage for every aspect of winding up. Provisions 270 to 365 deal with winding up, almost 1/4th the Act. Wherein it lays down the complete statutory provisions under those sections:
Section 270 of the Act, provides that the company may be wound up either:
- Voluntary winding up or
- Winding up by Tribunal
Following that
- Section 271 to 303 – deals with Winding up by the Tribunal
- Section 204 to 323 – deals with Voluntary Winding-up
- Section 324 to 358 – deals with provisions applicable to every mode of winding up
- Section 359 to 365 – deals with provisions relating to Official liquidator
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