2. What is creditors voluntary winding up?
When a 'declaration of solvency' by directors is not made and delivered to
the Registrar, in a voluntary winding up, it is a case of "creditors'
voluntary winding up." This mode of winding up is resorted to by insolvent
companies.
3. What is member's voluntary winding up?
A members voluntary winding up is possible only when the company is solvent
and is able to pay its liabilities in full. It requires the filing of a statutory
'Declaration of Solvency' by the majority of directors of the company
with the Registrar, and by passing of an ordinary or special resolution, as
the case may be, by the members at an extraordinary general meeting and filing
a copy thereof, with the Registrar.
4. Who is official liquidator?
The liquidator is a person who helps the Court to complete the liquidation
proceedings, i.e., in realising the assets of the company and distributing
them amongst the creditors and contributories most fairly. Only 'Official
Liquidator' can function as Liquidator, in compulsory winding up of a company
under the order of the Court.
5. What is compulsory winding up?
Winding up under the order of the court is also known as Compulsory winding
up. A company may be wound up by the court due to:
(1) special resolution
(2) default in holding Statutory Meeting or in delivering Statutory Report
to the Registrar,
(3) failure to commence business within one year of incorporation or suspending
its business for a whole year,
(4) membership below minimum,
(5) inability to pay debts or
(6) under just and equitable grounds.
Winding up under the order of the court is also known
as Compulsory winding up. A company may be wound up by the court on
certain grounds upon the petition of:
(1) the company
(2) creditors
(3) contributories
(4) by all or any two of the aforesaid parties together
(5) Registrar
(6) at the instance of Central Government
