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Q. No. 15: What are the different modes of winding up of a public limited company? ANSWER:
INTRODUCTION: The winding up or liquidation of company means the adoption of legal process which all the legal affairs of the company come to an end. All the assets of the company are disposed of and amount so received and used for payment of liabilities and only surplus received is distributed among its members according to their rights under the A.O.A in accordance with companies ordinance. MODES OF WINDING UP OF A JOINT STOCK COMPANY Section 297 of the companies ordinance 1984 explain the following modes of winding up of a joint stock companys Winding up by court. Voluntary winding up of a company Winding up under the supervision of the court 1) WINDING UP BY THE COURT: Section 305 of the companies ordinance 1984 provides that a company wound up by the court of. a) By Special Resolution: If the company has by special resolution, resolved to be wound up the court. b) Statutory Meeting Note Held: If default is made in delivering the statutory report to the registrar or in holding the statutory meeting. c) Commencement of Business: If the company does not commence its business within a year from its incorporation or suspends its business for the whole year. d) Reduction in Membership: In the number of members fall below seven. e) Failure to Pay Debt: If the company is unable to pay his debt. f) Count Opinion: If the court is of opinion that it is just and equitable that the company should wound up. VOLUNTARY WINDING UP OF A COMPANY: Voluntary winding up of a company is of two kinds. A) MEMBERS VOLUNTARY WINDING UP OF A COMPANY: The section 362 of the companies ordinance, 1984 says that a winding up in the case of which declaration has been made and delivered to the registrar is known as members voluntary winding up. The following are the circumstances of the voluntary winding up of a company.
0321-6485593
0321-6485593
0321-6485593