Winding up of company

DEFINITION:
  The existence of a company can be terminated by
means of winding up. The process of which the
company is dissolved is known as winding up of a
company.
 The winding up of a company is a proceeding in

which the co business is closed down sell off it's

asset and the creditor are paid. the balance of asset
are distributed to the members
MODES OF WINDING UP WINDINGUP

WINDING UP

COMPULSORY VOLUNTARY
WINDING UP
TRIBUNAL WINDING UP
 WINDING UP BY TRIBUNAL 
  It is primarily the National Company Law Tribunal
(NCLT) which has jurisdiction to wind up companies
under the Companies Act, 2013.

 • There must be strong reasons to order winding up

as it is a last resort to be adopted.
GROUNDS ON WHICH A COMPANY MAY BE
WOUND UP BY THE TRIBUNAL
  Under Section 271[1], a company may be wound up
by the tribunal if –
 • Company is unable to pay the debts<insolvent>
 • If the company has, by special resolution, resolved

that the company be wound up by the Tribunal;

 • If the company has acted against the interests of

sovereignty and integrity of India, the security of the

State, friendly relations with foreign States, public
order 
  If the Tribunal has ordered the winding up of the
company under Chapter XIX i.e. sick company
 If the company has made default in filing with the

Registrar its financial statements or annual returns

for immediately preceding five consecutive financial
years;
 • If the tribunal is of the opinion that it is just and

equitable that the company should be wound up.