Winding Up of a Company

Himanshu Behl and Riya Makker

Winding Up of a Company

Author : Himanshu Behl and Riya Makker Journa Name: International Journal of Law Management & Humanities Country : India Volume: 7 issue: 2 Year: 2024 Views : 437

Abstract:

Winding up of a company is the process whereby its life is ended, and its property administered for the benefit of its creditors and members. By the process of winding up, a company’s business operations are dissolved, and it starts selling of its assets to meet its liabilities. Winding up can be done either voluntarily by the company by passing a Special Resolution or by an outside party, such as a creditor or members of the company. A liquidator is appointed who takes control of the assets and discharge the liabilities. Winding up can be due to many reasons such as the company unable to pay off it’s debts or continue its operations. In this Research Paper, we will be covering a detailed analysis of situations in which a company can be wound up and various modes of winding up and declaration of solvency.