Please, Give Definition Of Winding Up Of Company?what Are The Modes Of Winding Up Of A Company?On What Grounds Can A Company Be Wind-up?Classes Of Persons That May Petition For Winding Up?


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Sana Rashid answered
"Winding up" of a company can be defined as the process by which a company is dissolved i.e. Its life is put to an end. During this process the company's assets are sold, debts are paid off and surpluses,if any, are distributed amongst owners. So the winding up of an incorporated business is the legal procedure by which its existence is brought to an end.  A liquidator is a person appointed to proceed with the closure. He carries out the winding up tasks.  The modes of winding up are:  1) by the court (unable to pay debts, unlawful activities, do not follow the memorandum or articles)  In this case, petition may be presented by  a)the company  b)creditors  c)contributories  d)registrar of companies  e)securities and exchange commission of the country or by a person authorised by the commission  2) voluntary  3) subject to the supervision of court (when company decides that voluntary winding up will be under the supervision of court)   

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