Winding up by Court
The company, creditors, contributories, liquidator, judicial manager, or the Minister may present an application to the court to wind up the company.
The Court may appoint a liquidator to wind up the affairs of the company. Where no liquidator is appointed by the Court, the Official Receiver shall be the liquidator of the company.
A company may be wound-up under an Order of the Court under certain circumstances:
a) The company has by special resolution resolved that the company be wound up by the Court;
b) Default is made in delivering the statutory report to the Registrar or in holding the statutory meeting;
c) The company does not commence its business within a year from its incorporation, or suspends its business for a whole year;
d) The number of members is reduced, in the case of a private company, below two, or, in the case of any other company, below seven;
e) The company is unable to pay its debts*; or
f) The Court is of opinion that it is just and equitable that the company should be wound up.
Effects of Winding Up by Court
·Any disposition of the property of company/transfer of shares/alteration of status of members after commencement of winding up is VOID.
When winding up order is made or provisional liquidator has been appointed, no action shall commence without the leave of the Court.