PRESENTING BY PRAKASH POOJA RENU

INTRODUCTION
Section 425 of the Companies Act, 1956, deals with the

winding up of companies. . Winding up of company is a legal procedure to dissolve the company and put an end to its life. During the process of winding up, the assets of the company are sold and all the debts of the company are paid off. It represents the last stage of a company.

DEFINITION
Winding up of a Company is defined as the process by

which the ending up of a life of a company. GOWER

The term winding up is defined as, the process by which

the life of a company is ended and its property is administered for the benefit of its members and creditors

REASONS
1.It has become impossible to carry out the main objects of the company. 2.The company has solved the business. 3.The company is not in a position to pay its debts in full.

MODES OF WINDING UP OF A COMPANY

1.Compulsory Winding up (Ss 433-Ss 483) 2.Voluntary Winding up (Ss 484-Ss 531) 3.Winding up under Supervision of the court Ss 527)
(Ss 522-

COMPULSORY WINDING UP (Ss 433-Ss 483)

Winding up of a company by an order of the court. Grounds for compulsory winding up (Ss 433)
Special Resolution Default in holding statutory meeting Failure to commence business Reduction of members Inability to pay debts Just and equitable

LIQUIDATOR
The liquidator is a person who helps the court to

complete the liquidation proceedings. On a winding up order being passed, the official liquidator ,by virtue of his office, become liquidator of the company. 1.Official Liquidator 2.Provisional Liquidator

VOLUNTARY WINDING UP (Ss 484-Ss 531)

Winding up by the members or creditors of the

company without the interference of the court. Circumstances:

By passing an ordinary resolution By passing a special resolution

TYPES OF VOLUNTARY WINDING UP

1.Members voluntary winding up

Shareholders resolution Declaration of solvency

2. Creditors voluntary winding up

WINDING UP SUBJECT TO SUPERVISION OF COURT

Winding up subject to supervision of court, is different

from "Winding up by court. Here the court only supervise the winding up procedure. Resolution for winding up, is passed by members in the general meeting. It is only for some specific reasons, that court may supervise the winding up proceedings. The main objectives of the supervision order is to protect the interest of the members , creditors and the company.

CONCLUSION
Winding up may be either through court or voluntarily by the members of the company. At the end of winding up the company will have no assets and liabilities. Winding up precedes the dissolution.