Winding Up of a Company

tortuous up of Comp any(prenominal) Section 425 of the Companies Act, 1956, deals with the twisty up of companies. Winding up of fraternity is a legal procedure to can the company and put an end to its life. The company ceases to be a going concern. The term winding up is defined as, the  process by which the life of a company is cease and its property is administered for the benefit of its members and creditors. During the process of winding up, the assets of the company atomic number 18 sold and all the debts of the company are paid off. An administrator, called the liquidator, is nominate to take control of the winding up process of the company. If any surplus is left, the liquidator would distribute it among the owners of the company in abidance to their rights. In case the assets are insufficient, the owners may have to adjust if the agreement so specifies. Any company does its  business  beneath the regulations set by the Act. It needs to follow the provisions of the figure and work in accordance to the memorandum and articles set to control the companys activities. It has to consider the interests of its owners, creditors as well as the public. If the company trespasses any of the provisions of the act, it may lead to winding up of the company.

A company may have to represent winding up proceedings on many accounts. The company could be wound-up either by a tribunal (through court) or voluntarily by the members of the company. A sick or potentially sick company can file a demand for voluntary winding up of company. The company must look to clearance for closure from the government. A company referred to the Board of monetary and Industrial Reconstruction can be wound-up after the rove is passed by the board. Once the amount of settlement (assets minus liabilities) is determined, the allowance of RBI is taken to make the final settlement to the owners of the company. overbearing winding up of a company may originate owing to many issues. Winding up  application can... If you indigence to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .