A company wound up is a legal process by which a company can be dissolved. According to Section 270 of the Company Act, 2013 Company may be winded up either (a) by the Tribunal; or (b) voluntarily. Here we are going to discuss Circumstances in which a company may be wound up voluntarily.
A company is wound up when it closes.
The winding-up of a company includes the process whereby the company stops doing business and its property and funds are collected, its debts are paid off, and its remaining property is distributed among its members.
Circumstances in which a company may be wound up voluntarily -
As per Section304 of the Company Act, 2013 A company may be wound up voluntarily —
(a) if the company in general meeting passes a resolution requiring the company to be wound up voluntarily as a result of the expiry of the period for its duration, if any, fixed by its articles or on the occurrence of any event in respect of which the articles provide that the company should be dissolved; or
(b) if the company passes a special resolution that the company be wound up voluntarily.