SPCC 3 Marks Each

Voluntary Liquidation by Creditors means liquidation made by the creditors for liquidation of the company.

Compulsory liquidation by the tribunal means Tribunal/ Court has passed an order for closure of the company.

Compulsory liquidation by the tribunal means Tribunal/ Court has passed an order for closure of the company.

Voluntary liquidation is a process in which a company is closed without an order of Court.

It is called dissolution through a tribunal to be taken into the liquidation process by a tribunal order.
In the following circumstances, the company can apply for a compulsory liquidation / dissolution through a tribunal:
1. When the company becomes incapable of paying the debt.
2. When the company is liquidated by special resolution
3. When the company does not comply with the provisions of primary meeting and primary report.
4. When the business does not start business within a year after the registration certificate is received.
5. When the reduction in the number of the company's requirement is recorded.
6. When the company has committed any act against the interest of sovereignty and integrity in India.
7. When the application applies to take the company into liquidation based on the fair and justifiable reasons for the court.

The Company’s members and creditors take the company into liquidation, without interference from the court, as "voluntary redemption / dissolution." The circumstances of this voluntary liquidation can be as follows:

• When the Company finishes: - In the company's regulatory framework, when the company is established to have been established for a specific period, the company, which is finishing the term, is automatically taken to the rubbish. The completion of the company's meeting can be taken into liquidation by passing a general resolution in the general meeting. For example:- The construction of six lane road of 1500 km, the work will be completed in the company set up. To complete the term is complete is taken to liquidate the company voluntarily.
• When a certain event occurs in the company: - At the company's regulatory order, it has been stated that the company can be taken to the liquidation even when it is carried out in a voluntary liquidation of the company, "there are certain specific events being made." In the company's general meeting, Normal resolution of liquidation is passed. Eg: -The business of the company is declared illegally by the government.
• Special resolution: - Even after being able to repay the financial position of the company and repay the debtors, a special resolution can be passed to the liquidation by passing a special resolution.

The members are required to pass the following rituals to dissolve in such a way that when the company decides to voluntarily, and members voluntarily decide to take the company into liquidation, it is called "voluntary dissolution by the members".
1. Declaration of Solvency: - When the proposals are submitted by the members to take the company into liquidation, the administrators have to prepare "a notification of rectification" and submit it to the company registrar. The majority of the executives of the company have to issue an affidavit on the declaration.
2. Resolution: - The Company’s administrators convene the general meeting of the members and the resolution to take the company into liquidation is passed. It is necessary to pass this resolution almost a full majority.
3. To declare liquidation resolution in the newspaper and official gazette: - After the resolution of the company being taken into liquidation, the company's registered office has to be advertised in the district headquarter located in the district within 14 days. Also, announcements in the official gazette also need to be made.
4. Appointing Liquidator for liquidation: Liquidator is appointed for the company's liquidation process, which governs the company's economic process.
5. Cessation of Power: - The management power of the managing director, the governing body, the secretary, the manager, etc, etc. ends on the appointment of Liquidator in the company.
6. Notice to Registrar: - After the appointment of Liquidator in the Company, the Registrar is notified in the prescribed time limit for his appointment.
7. To inform the Income Tax Officer for the appointment of Liquidator: - After the appointment of Liquidator in the company, the appointment of the Income-tax Officer in 30 days from the date of appointment has to be reported.
8. Re-appointment of liquidator: If the vacancy occurs in the accidental circumstances of the appointed liquidator, then the person is appointed as the other person's liquidator. The company registrar has to report the appointment of the previous and new levy of the liquidator.
9. Sale of property of a company by liquidator: - As part of the liquidation process, the company can acquire and sell all the properties of Tea Company based on the power given by Liquidator. According to the sale law, according to the interest of the members and creditors, the maximum price is given according to the auction.
10. General meeting of the members: If the process of extortion continues for more than one year, then the liquidator gets the general meeting of members at the end of every year and reports the report of the liquidation and the accounting till the time and the pending work report will be presented to the members. .
11. Winding up of a company: - Calling the final meeting of the Liquidator members, they present a complete report and accounts of the fundraising process and send this report of the meeting to the Official Liquidator. The official liquidator reports the tribunal on the basis of its report and the tribunal will make a decision on the company's discharge from the date of the report, making the right decision.