What is meant by winding-up of a company and what are its various mode?
Ans. Winding-Up.- Winding-up is a proceeding by means of which tho dissolution of a company is brought about and in the course of which Its assets are collected and realised and applied in payment of its and when these are satisfied, returning to its members the sums which they have contributed to the company or paying them other moneys lite to them in their charter of members. The proceeding is not confined mutt where a company is insolvent, but may be adopted as a means of enabling the corporations or their members to re-incorporate while cMended objects or further powers or more efficient means of management.
Modes of Winding-Up. Sec.270-The winding-up of a company may be under any of the following modes-
(a) by the Tribunal; or
The voluntary winding-up may be sub-divided into two:-
(a) member’s voluntary winding-up.
(b) Creditor’s voluntary winding-up. In the case of former all the control remains in the hands of members whereas in the case of latter the control is in the hands of creditors as the company goes insolvent.