Can a company be wound up by the orders of the National Company Law Tribunal if yes what could be the grounds of such order?

Can a company be wound up by the orders of the National Company Law Tribunal if yes what could be the grounds of such order?

The company would be wound up if Tribunal is of the opinion that it is just and equitable that it should no longer remain in function. With the passing of Insolvency and Bankruptcy Code, grounds of inability to pay debt and winding up under have been deleted.

Can a company be wound up by the order of the National Company Law Tribunal?

On hearing the petition, the Tribunal may dismiss it, adjourn it, make an interim order, or make a compulsory order for winding up the company Where the winding up order is made, the Tribunal will appoint the Official Liquidator satisfying the conditions given in Section 448 of the Companies (Amendment) Act, 2002.

Can a company be wound up by the Tribunal?

In case a company has made the provisions by passing a special resolution that wound up is made by the tribunal. In case the company fails to submit annual returns and financial statements of the last five financial years continuously then the registrar made the company defaulter n liable for winding up.

Under what circumstances a company can be wound up?

Circumstances in which a Company May Be Wound Up

• A special resolution is passed by the company that the company shall be wound up by the tribunal.
• Failure of the company in reporting a statutory report at the registrar’s office.
• Non-commencement of the company in business within one year of incorporation.

What does MCA mean in company law?

Ministry Of Corporate Affairs – Classification and Registration of Companies.

Who Cannot apply for winding up of a company?

Any creditor or creditors of the company may present a petition to the Court for winding up, alleging that the company is unable to pay the debts of the creditor in the manner specified in section 433 or 434.

Can directors wind up a company?

Alternatively you can choose to close your company by striking it off the Companies Register. For an insolvent company, directors can wind up their company through a creditors voluntary liquidation or a compulsory liquidation. Creditors can also apply to wind-up an insolvent company up through compulsory liquidation.

On what grounds Tribunal can pass order about compulsory winding up?

As per provisions of the Companies Act, 2013, compulsory winding up is possible only under the following circumstances: When the company has passed the special resolution effecting that the company be wound up by the Court or Tribunal. Has acted against the interest of the sovereignty and integrity of the country.

What happens to a company assets when it is wound up?

When a company is wound up this means it is officially closed down, its assets and liabilities are dealt with, and the business removed from the register held at Companies House. As part of this process, all assets the company has will be liquidated.

What does Department of company Affairs do?

It is primarily concerned with administration of the Companies Act 2013, the Companies Act 1947, the Limited Liability Partnership Act, 2008, Insolvency and Bankruptcy Code, 2016 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance …

Who is managing director in a company?

A managing director is someone who is responsible for the daily operations of a company, organization, or corporate division. In some countries, the term is equivalent to CEO (Chief Executive Officer) the executive head of a company.

Who are the persons entitled to apply for winding up of a company?

Who Can File Petition For Winding Up. Any creditor or creditors of the company may present a petition to the Court for winding up, alleging that the company is unable to pay the debts of the creditor in the manner specified in section 433 or 434.