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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
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.
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
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.