PART - XI 
WINDING UP

Voluntary Winding Up 

74. i.  A company may be wound up voluntarily by the shareholders at a General Meeting. 

ii. The shareholders shall appoint a liquidator to wind up the affairs of the Company. 

Compulsory Winding Up 

75. i.  The Department  may on  its own  or  at  the  request  of  the Administrative Ministry  compulsorily wind  up a  company where,  upon investigation of the company, the Department is of the opinion that: 

a.   the affairs  of the  company are  being  conducted  in  a  manner prejudicial to  the interests  of the  company its shareholders ad the country; 

b.   the company  has no  reasonable avenue  available to  enable  the company to meet its debts; 

c.   the company  has, without  justifiable reasons, failed to commence business after  its organisation  or incorporation,  or  suspends  its business for a period exceeding one year. 

ii. The  department shall  appoint a liquidator to wind up the affairs of the company. 

Duties of Liquidator 

76. i. A liquidator appointed by the shareholders or by the Department shall take  charge of all the assets and books of accounts and records of the company and prepare a statement of affairs of the company as on the date of winding up, including the following particulars: 

a.   the assets  of the company stating separately the cash balance on hand and  in the  bank, if any, and the negotiable securities, if any, held by the company; 

b.  its debts and liabilities; 

c.   the names  and addresses  of its creditors stating separately the amount of  secured and  unsecured debts,  and in  the case  of secured debts, particulars  of securities given by the company their value and the dates on which they were given; 

d.   the debts  due to the company with the names and addresses of the persons and entities from whom they are due and the amount expected to be collected  or realized  on account thereof and the officer/employee who approved the account. 

e.   any other  information that  may be  required by  law. Statements under subsection  i. (a)  - (e)  shall be  verified  by  the  Managing Director and  certified  as  correct  by  the  auditor(s)  as  may  be specified by the liquidator. 

ii.  A  liquidator  shall  have  all  the  powers  to  carry  out  his responsibilities under this Act. 

iii. The  Board, the  Managing  Director  and  all  the  officers  and employees of  the company  shall render  assistance to a liquidator in the exercise of his powers and duties. 

77. i.  For purpose  of settling  the claims  against the company; the Government shall  be paid  the statutory dues in full in preference to other claims. 

ii. After settling the claims against the company any balance shall be distributed pro-rata among the shareholders as per the Articles. 

78. After  settling all  the claims  and distributing  the surplus the liquidator shall  submit a  report to  the Department.  Thereupon, the dissolution of  the company  shall be  noted in  the  records  of  the Department. 

Winding Up By the Court 

79. Notwithstanding  anything contained  in this  Act,  the  Court  on receiving a  petition may order that a company be wound up if it is of the opinion that it is just and equitable.