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DEFUNCT COMPANY

Punit Tibrewal (student ) (1684 Points)

15 October 2009

when a company becomes defunct & its name is striked off from the register of companies....what are the consequences thereof..?

do the creditors & shareholders continue to have their rights over the assets of the company??

and whether the assets will be sold off to repay the liabilities..??

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8 Replies

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 15 October 2009

As per sec 560, a company ceased to carry on business is eligible for being dissolved as defunct company. A registrar shall strike off the name of the company only of the company do not have adequate assets to even meet the cost of liquidation.

If the company has sufficient assets and liabilities, the registrar will not strike off the name. Instead he will file an petition for winding up of the company. If he strikes of the name of the company, any creditor or member aggrieved by it can file a petition with the court

Punit Tibrewal (student ) (1684 Points)
Replied 15 October 2009

but a company may b declared defunct also when the no. of members go below 7..!!

what will happen in that case..??...and whether the assets will be sold off to repay the liabilities in this case..??

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 15 October 2009

In that case also, winding up petition can be made the ROC. Further, liability of all the members will become unlimited if the company continue for 6 months after such event. Company cannot be declared as defunct in such circumstances

Punit Tibrewal (student ) (1684 Points)
Replied 15 October 2009

thank u...!!

Kanika Sukheeja (Company Secretary) (52 Points)
Replied 13 November 2009

Can anybody let me know about the procedure for revival of striked off company?

Avika, ACS (HR Legal and Management Consultant) (172 Points)
Replied 14 November 2009

Dear Kanika,

We are a corporate consultancy firm and can help you in getting the same done.

Please feel free to contact us.

Avika Kapoor, ACS

Kapgrow Corporate Advisory Services Pvt. Ltd.

09310270884

Swati Gupta (undergoing cs training) (21 Points)
Replied 19 July 2011

pls provide me procedure for revival of defunct company as i m not aware about the necessary procedure.

SHILPI GUPTA (CS) (22 Points)
Replied 17 April 2014

A company has foriegn equity, and it wants to strike off its name from the Register of companies. Do we have to take the approval of RBI? And what procedure should we follow? How money ill be sent back?