Winding Up A Limited Company

Winding up is a process by which the life of a Limited company comes to an end and its property administered for the benefit and transfer to its members and creditors. An administrator, who is generally called the liquidator, is appointed to take control of the company winding up proceeding till all the assets and liabilities are disposed, He collects its assets, pays liabilities and at the end distributes the surplus (if any) among the members in accordance with their share held ratio. 

What happens after winding Up?

At the end of procedure, the company will not retain any assets or liabilities. On completion of  dissolution process, the company's name is struck off  from the register of the companies bringing end to legal personality of the company. 

The procedure for winding up may differ depending upon whether the company is registered or unregistered. A company incorporated under the Companies Act, 1956 is known as a registered company. 

Various type of Voluntary Winding Up of a Registered Company:- When dissolution of company in initiated by its directors or members it is know as Voluntary winding up. Procedure may include following steps:-

• By passing an ordinary resolution in the general meeting if :- (i) the period fixed for the duration of the company by the articles has expired; or (ii) some event on the happening of which company is to be dissolved, has happened. 
• By passing a special resolution to wind up voluntarily for any reason whatsoever. 

Note: - Within 14 days of passing the resolution, whether ordinary or special, it must be advertised in the Official Gazette and also in some important newspaper circulating in the district of the registered office of the company. 

For two methods for voluntary winding up:- 

3) Members' voluntary winding up :-It is possible in the case of solvent companies which are capable of paying their liabilities in full. There are two conditions for such winding up:- 

• A declaration of solvency must be made by a majority of directors, or all of them if they are two in number. 
• Shareholders must pass an ordinary or special resolution for winding up of the company. 

The provisions applicable to members' voluntary winding up are as follows:- 

• Appointment of liquidator and fixation of his remuneration by the General Meeting.
• Cessation of Board's power on appointment of liquidator except so far as may have been sanctioned by the General Meeting, or the liquidator.
• Filling up of vacancy caused by death, resignation or otherwise in the office of liquidator by the general meeting subject to an arrangement with the creditors.
• Sending the notice of appointment of liquidator to the Registrar.
• Power of liquidator to accept shares or like interest as a consideration for the sale of business of the company provided special resolution has been passed to this effect.
• Duty of liquidator to call creditors' meeting in case of insolvency of the company and place a statement of assets and liabilities before them.
• Liquidator's duty to convene a General Meeting at the end of each year.
• Liquidator's duty to make an account of winding up and lay the same before the final meeting.

4) Creditor's voluntary winding up 

It is possible in the case of insolvent companies. It requires the holding of meetings of creditors besides those of the member’s right from the beginning of the process of voluntary winding up. It is the creditors who get the right to appoint liquidator and hence, the winding up proceedings are dominated by the creditors. 

The provisions applicable to creditors' voluntary winding up are as follows:- 

• Meeting of Creditors
• Prepare a statement of position of the company and a list of creditors along with other claims.
• A copy of resolution of meeting of creditors passed and filled to ROC within 30 days
• It shall be done at respective meetings of members and creditors. In case of difference, the nominee of creditors shall be the liquidator.
• A Committee of five members for Inspection is appointed by creditors to supervise the work of liquidator.
• Fixation of remuneration of liquidator by creditors or committee of inspection.
• Cessation of board's powers on appointment of liquidator.

Why to choose AKT Associates for winding up your private limited company

Expertise-That counts:- Winding up a Private limited company can be a tedious and time consuming activity, It is recommended to should seek some advisory before proceeding for winding up. Our expert advice and assistance can speed up the process, reduce the cost and give you complete peace of mind.

Experience- That Matters:-At AKT associates we have been our client’s obvious choice since more than 20 years. For serving you with the best results we use our experience of decades which has exposed us with deep of all such matters. 

Efficiency-That reflects in everything: - With a strong team, which comprises of experts with qualification like CA, CS, MBA & LLB and they will all available to give wholesome result, with dedicated customer service team and support staff. We are always there to execute your work efficiently and suggest you about the best possible options available with you. 

Cost- That saves a Lot:-We touch the top position not just because we are the best in what we do but also because we know the value of your time and money. We know the value of your time so all the work by AKT Associates is performed on time and at around 70% less cost in comparison to all the other leading firms of the market that too without compromising on the quality aspect.

Conveniences-That says a Lot: - The services of the firm are performed and delivered by using the cutting edge technology which makes the AKT Associates always available & deliver services right there on demand. So it doesn’t matter where you are, our expert services are always at your finger tips.

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