> All About Winding Up of a Company under CA, 2013
**Meaning:**- Since we believe in Going Concern Assumption, as we want our business to flourish more & more, but at
some point of time due to several reasons one has to close down his business and that stage is known as winding up
of a company. It is the last stage of company in which its existence for past several years is dissolved and all its
assets are used to pay off the creditors, shareholders and other liabilities.
As per section 270 of the Companies Act 2013, the procedure for winding up of a company can be initiated either –
a) By the tribunal or,
**I. WINDING UP OF A COMPANY BY A TRIBUNAL:-**
As per Companies Act 1956, a company can be wound up by a tribunal on the basis of the following reasons:
1. Suspension of the business for one year from the date of incorporation or suspension of business for whole year.
2. Reduction in number of minimum members as specified in the act (2 in case of private company and 7 in case of
But with the introduction of new Companies Act 2013, these above stated grounds for winding up have been deleted
and some new situations for winding up have been inserted.
As per new Companies Act 2013, a company can be wound up by a tribunal in the below mentioned circumstances:
1. When the company is unable to pay its debts
2. If the company has by special resolution resolved that the company be wound up by the tribunal.
3. If the company has acted against the interest of the integrity or morality of India, security of the state, or has spoiled
any kind of friendly relations with foreign or neighboring countries.
4. If the company has not filled its financial statements or annual returns for preceding 5 consecutive financial years.
5. If the tribunal by any means finds that it is just & equitable that the company should be wound up.
6. If the company in any way is indulged in fraudulent activities or any other unlawful business, or any person or
management connected with the formation of company is found guilty of fraud, or any kind of misconduct.
**II. FILING OF WINDING UP PETITION:-**
Section 272 provides that a winding up petition is to be filed in the prescribed form no 1, 2 or 3 whichever is applicable
and it is to be submitted in 3 sets. The petition for compulsory winding up can be presented by the following persons:
The creditors ; or
Any contributory or contributories
By the central or state govt.
By the registrar of any person authorized by central govt. for that purpose
At the time of filing petition, it shall be accompanied with the statement of Affairs in form no 4. That petition shall state
the facts up to a specific date which shall not more than 15 days prior to the date of making the statement. After
preparing the statement it shall be certified by a Practicing Chartered Accountant. This petition shall be advertised in
not less than 14 days before the date fixed for hearing in both of the newspapers English and any other regional
**III. FINAL ORDER AND ITS CONTENT:-**
The tribunal after hearing the petition has the power to dismiss it or to make an interim order as it think appropriate or
it can appoint the provisional liquidator of the company till the passing of winding up order. An order for winding up is
given in form 11.
**IV. VOLUNTARY WINDING UP OF A COMPANY:-**
The company can be wound up voluntarily by the mutual decision of members of the company, if:
Ø The company passes a Special Resolution stating about the winding up of the company.
Ø The company in its general meeting passes a resolution for winding up as a result of expiry of the period of its
duration as fixed by its Articles of Association or at the occurrence of any such event where the articles provide for
dissolution of company.
**V. PROCEDURE FOR VOLUNTARY WINDING UP:-**
1. Conduct a board meeting with 2 Directors and thereby pass a resolution with a declaration given by directors that
they are of the opinion that company has no debt or it will be able to pay its debt after utilizing all the proceeds from
sale of its assets.
2. Issues notices in writing for calling of a General Meeting proposing the resolution along with the explanatory
3. In General Meeting pass the ordinary resolution for the purpose of winding up by ordinary majority or special
resolution by 3/4th majority. The winding up shall be started from the date of passing the resolution.
4. Conduct a meeting of creditors after passing the resolution, if majority creditors are of the opinion that winding up of
the company is beneficial for all parties then company can be wound up voluntarily.
5. Within 10 days of passing the resolution, file a notice with the registrar for appointment of liquidator.
6. Within 14 days of passing such resolution, give a notice of the resolution in the official gazette and also advertise in
7. Within 30 days of General meeting, file certified copies of ordinary or special resolution passed in general meeting.
8. Wind up the affairs of the company and prepare the liquidators account and get the same audited.
9. Conduct a General Meeting of the company.
10. In that General Meeting pass a special resolution for disposal of books and all necessary documents of the
company, when the affairs of the company are totally wound up and it is about to dissolve.
11. Within 15 days of final General Meeting of the company, submit a copy of accounts and file an application to the
tribunal for passing an order for dissolution.
12. If the tribunal is of the opinion that the accounts are in order and all the necessary compliances have been
fulfilled, the tribunal shall pass an order for dissolving the company within 60 days of receiving such application.
13. The appointed liquidator would then file a copy of order with the registrar.
14. After receiving the order passed by tribunal, the registrar then publish a notice in the official Gazette declaring that
the company is dissolved.