Procedure for closing down of pvt.ltd.co.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2013 Hi Expert,

Kindly advise me the procedure for winding up of company

Ajay Mishra

Ajay Mishra (Expert)
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21 October 2013 Hi

Companies registered under the Act may put an end to their affairs by winding up their business. This is carried out by realisation of the assets and applying the proceeds in payment of its debts and liabilities and if there is any balance left after meeting the liabilities, the same is paid back to the members in proportion to the contribution made by them to the capital of the company.

Meaning of winding up and dissolution

The terms "Winding up" and "Dissolution" are sometimes erroneously used to mean the same thing. However, they are quite different in their meanings. Winding up is a process whereby all assets of the company are realized and used to pay off the liabilities and members. Dissolution of the company takes place after the entire process of winding up is over. Dissolution puts an end to the life of the company. A dissolution order passed by the Court is like the Death Certificate of the company.

Modes of winding up of a company

Section 425 provides that a company may be wound up in the following ways:—
(a) by the Court/Tribunal, or;
(b) by the members voluntarily.

Its depend on you under which mode you want to go.

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