What is Voluntary Winding Up?

Voluntary Winding Up (Section 484 to 520)

In case of voluntary winding up, the entire process is done without Court Supervision. When the winding up is complete, the relevant documents are filed before the Court for obtaining the order of dissolution. The members may do a voluntary winding up as the creditors may do it.

The circumstances in which a company may be wound up voluntarily are: -

1. When the period fixed for the duration of the company in its articles has expired

2. When an event on the happening of which the company is to be dissolved as per its articles happens

3. The company resolves by a special resolution at a general meeting to be voluntarily wound up.

A voluntary winding up commences from the date of the passing of the resolution for voluntary winding up. This is so even when after passing a resolution for voluntary winding up, the Court presents a petition for winding up. The effect of the voluntary winding up is that the company ceases to carry on its business except so for as may be required for the beneficial winding up thereof.

Types of Voluntary Winding Up

A voluntary winding up may be:

· Member’s Voluntary Winding Up

· Creditor’s Voluntary Winding Up

You Might Also Like