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Introduction to Dissolution

What is windi...

Question

What is winding up of a company? How it is different from insolvency?

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Solution

Winding up of a company is a statutory process by which it ceases to exist as a legal entity. A company can end up its existence only by a legal procedure whereby its assets are realised and its liabilities are discharged. The winding up of a company does not necessarily mean insolvency. A company may be wound up even when it is solvent provided the members of the company take a decision to wind up the company.

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Q. 56. Consider the following statement about National Company Law Tribunal
1. It is a quasi-judicial body established under Companies act 2013 to adjudicate issues pertaining to companies in India
2. It was established on the recommendation of Eradi committee on law related to insolvency and winding up of companies
3. It has power to deal with cases related to revival of sick companies, mismanagement but has no power in regard to winding up of companies
Which of the above statement(s) is/are correct?

Q. Which option is NOT suitable for winding up of a company?

Q. To complete winding up procedure of a company _________ is appointed.

Q. The Part of share capital which can be called up only up on the winding up of a company is called.

Q. The part of share capital, which can be called up only on the winding up of a company, is called __________________.

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