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Winding Up Presentation

Winding up is the process of closing a company and distributing its assets to settle debts, marking the end of its legal existence. It can occur through compulsory, voluntary, or court-supervised methods, with specific grounds and processes outlined for each type. Recent developments have streamlined the winding-up process to ensure faster resolutions while protecting stakeholders' interests.

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Robin Kr
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28 views14 pages

Winding Up Presentation

Winding up is the process of closing a company and distributing its assets to settle debts, marking the end of its legal existence. It can occur through compulsory, voluntary, or court-supervised methods, with specific grounds and processes outlined for each type. Recent developments have streamlined the winding-up process to ensure faster resolutions while protecting stakeholders' interests.

Uploaded by

Robin Kr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Winding Up of a Company

College Name: SNJB's Shriman


Sampatlalji Pemrajji Surana Law College,
Chandwad
Name of Student:
Roll No:
Class: S.Y.L.L.B
Academic Year: 2024-2025
Introduction to Winding Up
• Winding up is the process of closing a
company and distributing its assets to settle
debts and liabilities. It marks the end of a
company's legal existence.
Types of Winding Up
• 1. Compulsory Winding Up
• 2. Voluntary Winding Up
• 3. Winding Up under the Supervision of the
Court
Compulsory Winding Up
• Compulsory winding up is initiated by a court
order when certain legal grounds are met. It is
governed by the Companies Act.
Grounds for Compulsory Winding
Up
• 1. Inability to pay debts.
• 2. Company acting against public interest or
national security.
• 3. Default in statutory obligations.
• 4. Tribunal's opinion that winding up is just
and equitable.
Voluntary Winding Up
• Voluntary winding up is initiated by the
company's members or creditors. It is less
formal and does not require court
intervention.
Types of Voluntary Winding Up
• 1. Members' Voluntary Winding Up
• 2. Creditors' Voluntary Winding Up
Winding Up under Court
Supervision
• This occurs when a company is in voluntary
liquidation, but the court assumes supervision
due to complexities or disputes.
Process of Compulsory Winding Up
• 1. Petition filed in the Tribunal.
• 2. Notice to the company and creditors.
• 3. Tribunal hearing and decision.
• 4. Appointment of liquidator.
• 5. Asset distribution and final closure.
Role of Liquidator
• The liquidator manages the winding-up
process, including:
• 1. Asset valuation and sale.
• 2. Debt settlement.
• 3. Distribution to shareholders.
• 4. Filing final accounts with the tribunal.
Consequences of Winding Up
• 1. Suspension of business operations.
• 2. Termination of employees.
• 3. Dissolution of the company's legal entity.
• 4. Creditors' rights are prioritized.
Case Laws on Winding Up
• 1. Madura Coats Ltd. v. Modi Rubber Ltd.
• 2. Official Liquidator v. Raghawa Desikachar
• 3. S.P. Jain v. Kalinga Tubes Ltd.
Recent Developments in Winding
Up
• The Companies (Winding Up) Rules, 2020
streamline the process and ensure faster
resolution. Tribunals focus on protecting
stakeholders' interests.
Conclusion
• Winding up is a critical process ensuring the
systematic closure of a company. It safeguards
creditors, employees, and other stakeholders
while maintaining legal compliance.

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