Modes of Winding up of a Company
                     Modes of Winding 
up of a Company
Introduction
• The liquidation of the Company’s assets, which are collected 
and sold in order to satisfy the obligations accrued, is referred 
to as winding up. When a corporation is wind up, the debts, 
expenditures, and charges are first paid off and dispersed 
among the shareholders. When a company is subject to 
liquidation, it dissolves officially and ceases to exist.
• Winding up is the legal process of closing down a firm and 
ceasing all operations. After the winding up of Company, the 
Company’s existence ends, and the assets are subject to 
supervision to ensure that the stakeholders’ interests are not 
jeopardised.
Procedure of Modes of Winding 
up of a company- Modes
• According to Section 270 of the Companies Act, 2013, a 
company can be wind up in two ways. They are:
Compulsory Winding up of Company by Tribunal
Voluntary Winding up of Company
Compulsory Winding up 
of Company
• According to Section 271 of the Companies 
Act, a Tribunal may issue an order to wind 
up a company in the following 
circumstances, 
• Sick Company
• Special Proposal
• Acts against the State
• Fraudulent Conduct of Business
• Failure to file financial statements with the 
Registrar
• It is just and equitable to wind up.
Procedure of Modes of Winding up of a 
Company-Compulsory Winding up of Company
A petition is use to make an application to the Tribunal in 
the winding up of a company under Section 272 of the 
statute.
• The following individuals are entitled to file this 
petition: 
• The Company; 
•  Any creditor or creditors, including any contingent or 
potential creditors; 
• Any Contributors to that company; 
• The Registrar; and 
• Any person authorised by the Central Government to do 
so.
The following is the procedure for compulsory winding up of company by 
tribunal:
• Appointment of a Liquidator to the Company under Section 275 to examine the 
Company’s debts and credits in order to verify the Company’s eligibility for 
forced winding up by the Tribunal.
• Following the appointment, Liquidators as per section 281 of the Act to make a 
report to the Tribunal.
• The Tribunal issues orders to the liquidators in dissolving the Company under 
Section 282 of the Act. And according to which, the company’s property 
undergo shift into custody in order to satisfy the creditors and contributors first.
• Finally, the Court issues the order for dissolution under Section 302 of the Act, 
after carefully reviewing the audits and reports provided by the liquidator to the 
Court in the interest of resolving the obligations owed to creditors and other 
contributors.
Voluntary Winding up of Company
Companies Act, 2013, specifies two statutory conditions in 
which a company may be voluntarily wind up. They are;
• If the company’s general meeting approves a resolution 
requiring the company to be wind up voluntarily as a 
consequence of the expiration of the time for its duration, 
if any, as per its articles, or the occurrence of any event for 
which the articles prescribe that the company may be 
dissolve; or
• If the board of directors approves a special resolution 
requesting that the firm is wind up voluntarily.
Procedure of Modes of Winding up of a Company- 
Voluntary Process
The following are the procedure for winding up of company 
voluntarily:
• Convene a board meeting with the directors and approve a 
resolution with a statement by the directors that they have 
inquired into the accounts of the business and that the 
company has no obligations or that the company will pay 
from the proceeds of the assets sold in the voluntary 
winding up of the company.
• Notices calling for the general meeting of the Company 
proposing the resolutions should be in writing. In addition 
with a relevant explanatory statement.
Contetra Can Help
 Strike that is A service that helps you get the details 
of “STRUCK OFF” companies, for hassle-free 
compliance with the new mandatory
disclosure requirement of schedule III.
 Contetra  provides solution  for  below two  
steps only by using below tool-
  
Upload your list MCA Struck Off 
Step V1en-d  o r s  / s u p p  li e r s                         R e c  e iv  e   th  e   oSuttpeutp in 2 re-cord
with their GST numbers (which time (powered by our AI-
is easily available with every enabled tool that scrapes through
finance team). For those vendors MCA website for you – leaving no
where GST number is not available, room for manual errors)
our tool can also do a PAN or CIN
based search.
Website : 
https://contetra.com/strike-t
hat/
Email Id : 
[email protected]
Phone No : 98338 18857