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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.