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Winding up

Geeta Goswami (Practicing Company Secretary) (36 Points)

11 December 2015

WE HAVE TO CLOSE A PUBLIC LIMITED COMPANY. WHAT IS THE PROCEDURE? WE HAVE TO GO TO HIGH COURT TO CLOSE THE PUBLIC LIMITED COMPANY.

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Anand Verma (Associate) (67 Points)
Replied 11 December 2015

There are two modes for closure of a company under winding up first voluntary wintary winding up and second winding up under the supervision of the court.

Since provisions of the Companies Act 2013 in relation to winding up is not yet notified therefore provisions of the Companies Act, 1956 in relation to winding up is still applicable. Sections 425 and above contains the provisions for winding up in Companies Act 1956 and section 439 state the eligibility for making winding up petition. For Voluntary winding up company have to pass special resolution. For winding up under the supervision of the court application have to be made to teh concerned Hon'ble High Court of teh state in which registered office of the company is situated.

Further, if your company is not listed and quantum of assets and liabilities is not much you can opt for FTE (Fast Track Exit) Scheme floated by Ministry of Corporate Affairs, which is simplest, economical and fastest mode for closure of a company.

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