Can you wind up a company in administration?
If you think your company is in financial difficulty, get professional advice as soon as possible. If your company is insolvent, don’t wait to act. Unless you quickly get funding to make the company viable, you will need to appoint a voluntary administrator or a liquidator.
What is the process of winding up a company?
Winding up is the process of dissolving a company. While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
What are the consequences of winding up of a company?
Consequences of Winding Up Winding up doesn’t take away the existence of the company completely. The company continues to exist as a corporate entity till its dissolution. All the ongoing business of the company is administered by the liquidator during the phase of liquidation.
Who can apply to wind up a company?
Under s. 124(1) IRDA, the creditor, amongst others, are entitled to present a winding-up petition. By far the vast majority of winding up applications are made by creditors seeking to enforce the payment of undisputed debts.
Who can initiate winding up of a company?
1. Voluntary Winding up of a Company. The Winding up of a Company can be done voluntarily by the members of the Company, if : The company passes a special resolution for winding up the Company.
Who can apply for winding up 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.
What are the modes and consequences of winding up of company?
The other consequences of winding-up by the Court are: (a) Intimation to official liquidator and Registrar (Sec. 444); (b) Copy of Winding-up order to be filed with the Registrar; (c) Order for winding-up deemed to be notice of discharge [Sec.
When can a company be voluntarily wound up?
If two thirds in value of creditors of the company are of the opinion that it is in the interest of all parties to wind up the company, then the company can be wound up voluntarily. If the company cannot meet all its liabilities on winding up, then the Company must be wound up by a Tribunal.