Winding up of Company
Distribution of property of company on voluntarily winding up [ both members and creditors voluntarily winding up]
Once the company is fully wound up, and assets of the company sold or distributed, the proceedings collected are utilized to pay off the liabilities. The proceedings so collected shall be utilized to pay off the creditors in equal proportion . Thereafter any money or property left, may be distributed among members according to their rights and interests in the company.
Winding Up Subject to Supervision of Court
Winding up subject to supervision of court, is different from "Winding up by court."
Here the court only supervise the winding up procedure. Resolution for winding up, is passed by members in the general meeting. It is only for some specific reasons, that court may supervise the winding up proceedings. The court may put up some special terms and conditions also.
However, liberty is granted to creditors, contributories or other to apply to court for some relief. (522)
The court may also appoint liquidators, in addition to already appointed, or remove any such liquidator. The court may also appoint the official liquidator, as a liquidator to fill up the vacancy.
Liquidator is entitled to do all such things and acts, as he thinks best in the interest of company. He shall enjoy the same powers, as if the company is being wound-up voluntarily.
The court also may exercise powers to enforce calls made by the liquidators, and such other powers, as if an order has been made for winding up the company altogether by court. ( 526)
Priority Indisposing Liabilities [529 A & 530]
When the company is wound up, by any mode, the liabilities shall be discharged in following priority.
Debts due to secured creditors, in case of insolvency.
All ---------, taxes, cesses and rates due from the company to the central government or a state govt.
All wages and salary of any employee due within four months.
All -------- holiday remuneration becoming payable to any employee.
All such debts shall be paid in full. If assets are insufficient to meet them, they shall abate in equal proportions.
Money Received By Liquidator : (553)
Apart from an official liquidator, every liquidator appointed by company or court to carry on the winding up procedure, shall deposit the money is received by him in a scheduled bank, to the credit of a special banking account opened by him.
Winding up ( Contd.)
Apart from a normal company, registered under the companies Act, 1956 there are other companies as well winding up procedure for these companies are bit different from a company registered under companies Act.