Procedure for closing a private limited company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2013 I want to know the procedure of closing down or shutting down a private limited company.

Kindly Assisst.

Thanks.

JOYAL GEORGE

JOYAL GEORGE (Expert)
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11 January 2013 Dear Member,
A company, once incorporated is a separate legal entity created under law and different from its promoters. Since a company, be it public or private, is born by an action under law, it can be closed down only by an act of law.
Hence you need to give petition in the high court or Company Law Tribunal. The petition may be given by the members after passing a special resolution in the general meeting of members.
In certain cases,to allow defunct and non-functioning companies to close down, certain schemes will be introduced by the government like easy exit schemes. Under such schemes, you may wind up a company by following the prescribed formalities. Remember, such schemes are applicable only for non-functioning companies.

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