{"id":696,"date":"2020-11-23T06:53:09","date_gmt":"2020-11-23T06:53:09","guid":{"rendered":"https:\/\/www.biatconsultant.com\/blog\/?p=696"},"modified":"2020-11-23T06:53:15","modified_gmt":"2020-11-23T06:53:15","slug":"how-companies-are-dissolved-legally","status":"publish","type":"post","link":"https:\/\/www.biatconsultant.com\/blog\/how-companies-are-dissolved-legally\/","title":{"rendered":"How Companies are dissolved legally?"},"content":{"rendered":"\n

What do you mean by Winding-Up?<\/strong><\/p>\n\n\n\n

Winding-up happens to be a circumstance where the life of a company has ended and property is administered so as to benefit the shareholders & creditors.<\/p>\n\n\n\n

Form of Winding-Up<\/strong><\/p>\n\n\n\n

By court ( NCLT)\/ mandatory Winding-up<\/p>\n\n\n\n

Voluntary Winding-up (provisions regarding voluntary winding-up have been abrogated and has now been moved to Insolvency & Bankruptcy code).<\/p>\n\n\n\n

Voluntary Winding-Up<\/strong>: The Insolvency and Bankruptcy Code, 2016 regarding re-organization and insolvency resolution of companies, partnership firms and individuals in a timely way.<\/p>\n\n\n\n

The Insolvency and Bankruptcy Code, 2016 pertains to substances regarding the insolvency and dissolving of a company where the least amount of the defaulting is Rupees one lakh at present but it might be hiked up to Rupees one crore by the Government, via notification).<\/p>\n\n\n\n

Compulsory (Tribunal) winding up<\/strong><\/p>\n\n\n\n

The winding up<\/a> procedure is carried out by the tribunal. Also called tribunal winding up, this procedure is single-handedly performed by the tribunal and the company has minor or zilch say in the process. Hence, a company will be reduced to a mere spectator and will not follow any directions.<\/p>\n\n\n\n

Conditions regarding voluntary wind up:<\/strong><\/p>\n\n\n\n