Creditors Voluntarily Wining up

 

  1. Where the resolution for winding up has been passed, but the Board of Directors are not in a position to give a declaration on the liability of company, they may call a meeting of creditors, for the purpose of winding up. (500)
  2. It is the duty of Board of Directors, to present a full statement of company 's affairs, and list of creditors along with their dues, before the meeting of creditors. [500 (3)]
  3. Whatever resolution, the company passes in creditor's meeting, shall be given to the Registrar within ten days of it'spassing. (501)
  4. Who shall carry out the winding up procedure and at shall be the procedure ?
  5. Company in the general meeting [ in which resolution for winding up is passed] , and the creditors in their meeting, appoint liquidator. They may either agree on one liquidator, or if two names are suggested, then liquidator appointed by creditor shall act. (502)
  6. Any director, member or creditor may approach the court, for direction that ;

 

  1. Liquidator appointed in general meeting shall act, or
  2. He shall act jointly with liquidator appointed by creditor, or
  3. Appointing official liquidator, or
  4. Some other person to be appointed as liquidator. [502 (2)]

 

  1. The remuneration of liquidator shall be fixed by the creditors, or by the court. (504)
  2. On appointment of liquidator, all the power of Board of Directors shall cease. (505)
  3. In case, the winding up procedure, takes more than one year, then he will have to call a general meeting, and meeting of creditors, at the end of each year, and he shall present, a complete account of the procedure, and the status / position of liquidation (505).