Section 555 of Co. Act 1956 is regarding the payment of certain amounts by Liquidator in the Liquidation Account of Companies. What is it all about ? i tried to understanf from the Book but not getting it. Plz explain ?
03 November 2011
Sec 555 provision in simple words: -
1) Where any company is under winding up and its liquidator has in his control any unpaid dividend/undistributed assets of more than six month, he will deposit the same in Companies Liquidation Account of RBI.
2)Liquidator shall inform to prescribed officer of Government all the details of amount deposited given in point (1) above.
3)If any person want to claim any sum from above mentioned Account, he can submit his claim to NCLT or Central Govt, and NCLT or Central Govt may order payment of the same to that person.
4) Money remaining unclaimed in above mentioned Account after 15 years shall be transferred to General Revenue Account of Government.
5) If liquidator does not deposit amount in this Account (as given in point (1)) shall be liable to pay interest @12% p.a. and penalty.
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