SPCC 1 Marks Each

Investigation Committee is a committee of members that investigate the possibility of wrongful trading.

Liquidation of the company means the closure of the company.

Voluntary Winding Up by members means members apply for liquidation of the company even when the company is operating its affairs efficiently.

Voluntary Winding Up means creditors or members apply for liquidation of the company even when the company is operating its affairs efficiently.

Sometimes, a company does not efficiently manage the business. The company is closed in such a situation.

Liquidation is the process of closure of the company.

Winding up is the process of closure of the company.

Liquidation is a process in which all the assets of the company are sold out and liabilities are paid off.

The liquidator is appointed in the meeting of shareholders and creditors.

A company is an artificial person created by law. It cannot run on its own.

On the basis of the official liquidator report, the tribunal will make a proper decision and order the dissolution of the company from the date of the report.

If the vacancy occurs in the accidental circumstances of the appointed liquid levitator, then additional liquidator is appointed to take action against the liquidator.

The Company has to report the appointment of liquidator to the income tax officer within 30 days from the date of appointment.

Liquidator's remuneration is determined by the investigation committee and by the court in the creditors meeting.

When the company has received a proposal for voluntary dissolution by creditors, the company sends the members and the creditors together with the notice of the meeting.

When a company is insolvent and the directors are unable to make the declaration of solvealy, voluntary winding up is carried out by the creditors. This is called Creditors' Voluntary Winding up.

At the end of the liquidation process, Liquidator invites the liquidation process and accounts for the official liquidator.

If the liquidation process continues for more than one year then the Liquidator has to convene a general meeting of members every year.

The notice of the appointment of Liquidator is made to the Registrar and the Income Tax Officer in the prescribed time.

Liquidator is appointed for the process of winding up of company, which governs the company's economic process.

The announcement regarding the resolution of the company to take the liquidation in the form of liquidator has to be given in the official gazette besides the district newsletter.

After passing the resolution of the company to take the liquidation in a lump sum, within 14 days, the company has registered office in addition to the district circular in the official gazette.

If the administrators have not made the requisite notification in accordance with the law, then all the proceedings of the company to liquidate the company are canceled.

The majority of the administrators in the company have to issue an affidavit on the affidavit.

When the members voluntarily dissolve, the counselors have to prepare the notification of the sermon and submit it to the company registrar.

The Company can be liquidated after passing the special resolution in the general meeting, even if the company's financial status is sound and the company is able to pay debts to the lender.

The Company and its creditors can decide to take the company to liquidation without delay in going to court.

The court has vast powers to take the company into liquidation on the basis of fair and justifiable reasons.

If the company continues to operate in spite of the reduction in the number of the company's number, then each member who is aware of it is personally held responsible for all future debts of the company.

Though the company continues to pursue business for 6 months even though the company's number has decreased, its knowledgeable members are considered to be responsible.

If the company does not call a legal primary meeting and the primary report is not sent to the registrar, then the company registrar can take company into liquidation.

Authorities of the company are empowered to apply in court with a copy of a special resolution for liquidation.

If the number of members in the public company is less than 7 and the number of members in the private company is less than 2 then the company can be liquidated.

If the company does not call the primary meeting, the company's shareholders and other beneficiaries may apply for liquidation of the company, 14 days after the date of the meeting.

Before the company is asked to take the liquidator, the company registrar has to get approval from the central government.

Even if the company's financial position is poor, if the company does not have debt, then the court will not order the company to be liquidated.

As per Professor L.C.B.Gower, "Winding up of a company is the process whereby its life is ended and its property administrated for the benefit of its creditors and members."

In general, the company's dissolution occurs only after the company's liquidation process and validation is completed.

If the company has to dissolve, it has to be taken before the liquidation process.

The Company cannot die naturally because the company is not a physical existence.

After the appointment of liquidator in the company, the power of Managing Director, The Board of Directors, Manager is ceased.

In order to monitor the proceedings of the litigator, the creditors will appoint the investigation committee in their meeting.

The Company’s registered office of liquidation is to be given in the district's newspaper in which the district is located. Apart from this, advertising has to be made in the official gazette.

Where a company is solvent, it is able to pay its debts in full, the voluntary winding up takes the form of members' voluntary winding up. For this purpose 'Declaration of solvency' shall be made by Directors.

The Company’s administration becomes an impossible due to a deadlock in the company.

In case the company is unable to pay its debt, the application for liquidation of the compulsory company is taken in court.

Generally, the company decides to engage in business when the financial condition of the company is bad and it is impossible to pay the debt.

The Company is created and dissolved by legal proceedings.

Voluntary winding up means winding up at the insistence of the members of the company, without any interference of the court.

In order to take the company into liquidation through a tribunal order, it is called a compulsory dissolution through a tribunal.