Members Voluntarily Winding up

 

Directors of the company shall call for a Board of Directors Meeting, and make a declaration of winding up, accompanied by an Affidavit, stating that;

 

  1. The company has no debts to pay, or
  2. The company will repay it's debts; if any, within 3 years from the commencement of winding up, as specified in declaration (488)

 

Who shall carry out the winding up procedure? and What shall be the procedure?

 

  1. The company shall appoint one or more liquidators, in a general meeting, who shall look after the affair of winding up procedure, and distribution of assets. [ 490 (1)]
  2. The liquidator so appointed, shall be paid remuneration for his services, which shall also be fixed in general meeting [490 (2)]
  3. The company shall also give notice of appointment of liquidator to the registrar within ten days of appointment (493)
  4. Once the company has appointed liquidator, the powers of Board of Directors, Managing Director, and Manager, shall cease toexists. (491)
  5. The liquidator is generally given a free hand, to carry out the winding up procedure, in such a manner, as he thinks best in the interest of creditors, and company.
  6. In case, the winding up procedure, takes more than one year, then liquidator will have to call a general meeting, at the end of each year, and he shall present, a complete account of the procedure, and position of liquidator (496)