Winding up of Company
Members Voluntarily Winding up
Directors of the company shall call for a Board of Directors Meeting, and make a declaration of winding up, accompanied by an Affidavit, stating that;
- The company has no debts to pay, or
- The company will repay it's debts; if any, within 3 years from the commencement of winding up, as specified in declaration (488)
Who shall carry out the winding up procedure? and What shall be the procedure?
- The company shall appoint one or more liquidators, in a general meeting, who shall look after the affair of winding up procedure, and distribution of assets. [ 490 (1)]
- The liquidator so appointed, shall be paid remuneration for his services, which shall also be fixed in general meeting [490 (2)]
- The company shall also give notice of appointment of liquidator to the registrar within ten days of appointment (493)
- Once the company has appointed liquidator, the powers of Board of Directors, Managing Director, and Manager, shall cease to exists . (491)
- The liquidator is generally given a free hand, to carry out the winding up procedure, in such a manner, as he thinks best in the interest of creditors, and company.
- In case, the winding up procedure, takes more than one year, then liquidator will have to call a general meeting, at the end of each year, and he shall present, a complete account of the procedure, and position of liquidator (496)