Winding up of a company

and formalities of winding up

Presented By:
FAS-AG1
Winding Up- Meaning:

 Winding up of a company is a process of putting an end to the life of a

company
 It is a proceeding by means of which a company is dissolved
 In the course of dissolution its assets are collected, debts are paid off
out of the assets or from contribution by its members
 Management of a company’s id taken out of directors hands, assets
realized by liquidator, debt also realized and liabilities given out of
realization
 Surplus of its assets are returned to the members or shareholders
Winding Up(Contd.):

 In every winding up, a liquidator is appointed to administer the property

of the company
 The company, must apply the assets of the company first in the
payment of the creditors in proper order then, in distributing the residue
among the members according to their rights.
 Section 270 of the companies act lays down the procedure for winding
up of a company