Winding Up of Companies

Winding up is a process in which the existence of a company is brought to an end. The company’s assets are sold off and then used to pay off the company’s debts. Any excess proceeds are then returned to the shareholders of the company.

There are 2 modes of winding up:

  • Voluntary winding up; and
  • Compulsory i.e. Winding up by Court

The process flow for winding-up is contained in the Companies Act 1965 and retained in the Companies Act 2016. 

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