MAHA Global and IPR: Do Actions Speak Louder Than Words?
Winding up
1. Winding Up
According to Prof Gower
“Windingup of a company is a process by
whereby its life is ended and its property
administered for the benefit of its creditors and
members”.
Anadministrator, called Liquidator is
appointed and the takes control of the
company, collects its assets, pays its debts
and finally distributes any surplus among
the members in accordance with their rights.
2. Modes of Winding Up
Windingup by Court i.e., Compulsory
Winding Up
Voluntary Winding Up
Winding up subject to Supervision of
Court
3. Grounds of Compulsory
Winding Up
Special Resolution By Court
Default in Delivering the Statutory
Report to the Registrar or in holding
Statutory meeting.
Failure to commence, or suspension of,
Business
Reduction in Membership
4. Grounds of Compulsory
Winding Up
Inability to pay its debts
When a company is unable to pay its debts
Demand for payment neglected
Decreed debt unsatisfied
Commercial insolvency
5. Grounds of Compulsory
Winding Up
Just and Equitable Clause
When the substratum of a company is gone
When the management is carried on in such a way
that the minority is disregarded or oppressed
When there is deadlock in the management of the
company Ex: Yenidje Tobacco Co Ltd
Where Public interest is likely to be prejudiced.
When business of company become illegal
When the company is a mere bubble and does not
carry on any business or does not have any
property.