Company Winding Up
If any company or other body corporate the affairs of which have been investigated by inspectors is liable to be wound up under this Act, and it appears to the Commission from any report made under section 262 that it is expedient so to do by reason of any such circumstances as are referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (vii) of clause (b) of sub-section (1) of section 257, the Commission may, unless the company or other body corporate is already being wound up by the Court cause to be presented to the Court by the registrar or any person authorised by the Commission in this behalf-
(a) a petition for the winding up of the company or body corporate, on the ground that it is just and equitable that it should be wound up;
(b) an application for an order under section 286; or
(c) both a petition and an application as aforesaid
Modes of winding up of company
The winding up of a company may be either
1.by the court
3 subject to the direction of the court
The following documents are required
1-Application for striking off company,s name
Advantages of Winding up a Company
- Liberated from obligations after liquidation: Once the liquidation procedure is finished, the chiefs and all organization authorities are liberated from all leaser liabilities and burdens.
- Evading lawsuit against the organization:If the goals are passed deliberately by chiefs, they will disregard lawful activity taken by the court or the council, and give a stage to organization executives to focus on different business openings.
- Comparingly low price for liquidation: The expense or costs engaged with the liquidation procedure is generally low, as charges will be applicable on the offer of advantages.
- All rent/lease contracts will be dropped:If any organization or element has gone into rent for an endorsed period, during the liquidation procedure, it will send all the terms and states of the rent. If any penalty must be paid, it will be deducted from the offer of benefits or assets.
- Favorable circumstances for loan lenders: After a drawn-out battle, banks will profit by the liquidation procedure as they will be qualified for a default installment, concerning the suggestion of credits given by all lenders.