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procedure for closing private limited company

Satish Kavitake (395 Points)

14 December 2018

what is the procedure for closing private limited company..

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jyoti bhagchandani (fresher) (595 Points)
Replied 14 December 2018

As per the Companies Act 2013, BD (Board Resolution) is required to wind up the company voluntarily. However, the majority directors must agree for winding up.

Also, a Special Resolution is required to wind up of the company where 3/4th the total Shareholders must cast their vote in favor of winding up the company.

The consent of the Trade Creditors is also required to wind up the company. Trade Creditors has to give their approval that they don’t have any obligation if the company gets wound up.

The Company has to make a Declaration of Solvency and the same must be accepted by the trade creditors of the company. The Company must show the Company’s credibility in Declaration of Solvency.

The liquidator so appointed will make a report of the assets, liabilities, reserves, capital etc.

All the above-mentioned procedures shall be presented and filed in a prescribed form and even after the company gets wound up then also company’s name shall be prohibited for 2 years to be taken by any other applicant.