22 December 2014
Winding-up • Chapter XX of the 2013 Act consisting of sections 270 to 365, deals with the provisions of winding-up of companies. The 1956 Act prescribes three modes of winding-up. This includes the following: - By the court - Under the supervision of the court - Voluntary As against the existing modes of winding-up as prescribed by the 1956 Act, the 2013 Act prescribes the following two modes: - By the Tribunal - Voluntary • The 2013 Act does not acknowledge the distinction between members voluntarily winding-up and creditors voluntarily windingup. Additionally, the new grounds for winding-up by Tribunal are as follows: - In a situation when 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, decency or morality - Order has been made under Chapter XIX (Revival and Rehabilitation of Sick Companies). - An application has been made by the ROC or any other person authorised by the central government by a notification under the 2013 Act. - The tribunal is of the opinion that the affairs of the company have been conducted in a fraudulent manner or the company was formed for fraudulent and unlawful purposes or the persons concerned in the formation or management of its affairs have been found guilty of fraud, misfeasance or misconduct in connection therewith, and that it is proper that the company be wound up - The company has made a default in filing with the ROC, its financial statements or annual returns for immediately preceding five consecutive financial years
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