Winding up of Company
Creditors Voluntarily Winding up
- Where the resolution for winding up has been passed, but the Board of Directors are not in a position to give a declaration on the liability of company, they may call a meeting of creditors, for the purpose of winding up. (500)
- It is the duty of Board of Directors, to present a full statement of company 's affairs, and list of creditors along with their dues, before the meeting of creditors. [500 (3)]
- Whatever resolution, the company passes in creditor's meeting, shall be given to the Registrar within ten days of it's passing. (501)
- Who shall carry out the winding up procedure and at shall be the procedure?
- Company in the general meeting [ in which resolution for winding up is passed], and the creditors in their meeting, appoint liquidator. They may either agree on one liquidator, or if two names are suggested, then liquidator appointed by creditor shall act. ( 502)
- Any director, member or creditor may approach the court, for direction that ;
- Liquidator appointed in general meeting shall act, or
- He shall act jointly with liquidator appointed by creditor, or
- Appointing official liquidator, or
- Some other person to be appointed as liquidator. [502 (2)]
- The remuneration of liquidator shall be fixed by the creditors, or by the court. (504)
- On appointment of liquidator, all the power of Board of Directors shall cease. (505)
- In case, the winding up procedure, takes more than one year, then he will have to call a general meeting, and meeting of creditors, at the end of each year, and he shall present, a complete account of the procedure, and the status / position of liquidation (505).