Business Studies XI Content
Winding up of company
Winding up of Joint Stock Company
Winding up of Joint Stock Company is the process of bringing the existence of the company to the end. It refers to the closure of business forever. In this time company being a legal person created by law can dissolve its own business in the following way:
1. By company registrar office
According to company act, registrar office may order winding up company under following condition:
- If promoters of the company makes application showing reasons for failure to commence the business of company
- If company is in default in submitting office return notice, information and facts to pay fine as required by the act
2. By voluntarily
In the following condition company can wind up;
- Company has become insolvent with accordance with law on insolvency
- Shareholders of company can wind up the company either by adopting special resolution in general meeting
- If company is able to pay its debts and other liabilities in fault.
- If directors of company have after due, company makes declaration in written form that the company is able to pay its debts or other liabilities in full.