Winding Up of Company
When the private limited company fails to maintain compliances of the company which results in disqualifications of the directors from the company which makes the private limited company inactive and leads to no transactions inside activities, the company has to wind up. There can be voluntary winding up of the company at any time by the directors and shareholders of the company. The outstanding dues must be settled before winding up the company and the bank accounts of the company must be closed. Also, the company must proceed for overdue compliances and registered should be surrendered and then winding up application can be filed with the Ministry of Corporate Affairs.
Reasons for winding up the company:
The winding up the company requires the number of reasons such as the closure of business, losses, bankruptcy, etc.
Winding up of the company by Tribunal:
The process of winding up the company can be done voluntarily with the agreement of shareholders or creditors or tribunals. The Companies Act, 2013 shows a company can be wound up if:
– Over dues of debts and unable to pay.
– By Special resolution.
– Activities against sovereignty and integrity of India.
– Order from Tribunal for winding up the company under Chapter XIX
– Not filing the financial statements or annual return for 5 consecutive financial years
– Fraudulent activities
Voluntary winding up:
The members of the company can wind up the company voluntarily under the following conditions
– The special resolution passed for winding up
The resolution passed in
– General meeting by members
Steps for winding up the company voluntarily:
The following are the process for a voluntary winding up of a Company:
– Call for a Board Meeting with 2 directors or by a majority of Directors and pass a resolution.
– Issuing notices in written for a general meeting with explanation statements.
– 3/4 majority in special resolution or ordinary resolution passed in General meeting
– Conducting meeting with the creditors.
– Within 10 days of passing of the resolution for winding up of company, notice must be filed with the Registrar for the appointment of liquidator.
– Within 14 days of passing the resolution for winding up the company, advertisement and circulation and notice of the resolution in official Gazette must be given.
– Filing the certified copies of the resolution passed in a general meeting within 30 days
– Liquidators accounts must be audited
– Call for a final general meeting
What are the reasons for winding up the company?
Avoiding compliances, Fast to close the business, avoiding fines, low cost and easy to close. Get in touch with Innovante for proceeding further with easy steps.