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How to wind-up a company part-2

This time, we have covered the topic of voluntary winding up of the company either by the Members or Shareholders.<br><br>For more info contact us: https://unimarkslegal.com

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How to wind-up a company part-2

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  1. HOW TO WIND-UP A COMPANY WINDING UP PROCEDURE IN INDIA PART - 2 Unimarks

  2. Winding up – under IBC, 2016 As defined under Companies Act The Eleventh Schedule of the insolvency and Bankruptcy Code, 2016 which provides Amendments to the Companies Act, 2013 defining the term Winding Up is in paripasu with the definition of winding up under Company Act, 2013 Section 2 (94A) As defined under Insolvency and Bankruptcy Code Defines Winding Up

  3. Modes of Winding Up of a Company Under IBC • Voluntary Winding Up • Modes Of Winding-Up • Section 59 • By Order of the Tribunal • Section 33 to54

  4. Winding Up by the Company – Sectionwise Insolvency and Bankruptcy Code, 2016 Section 33 to 54 – Detailed procedure on Liquidation proceedings of the Company Section 53 – Waterfall Mechanism Procedure for Voluntary Section 59 – Winding up of the Company and Conditions under which the company can go into Litigation. Insolvency And Bankruptcy Code, 2016

  5. Procedure of Liquidation under IBC, 2016 • Appointment of Liquidator • Submission of Claims • Preparation of report and deposit of Dividends • Application of Dissolution

  6. Waterfall Mechanism • Waterfall Mechanism under IBC prioritizes secured creditors over unsecured creditors. • Under section 53 of the insolvency and Bankruptcy Code, the liquidated assets are first distributed to clear • 1.Workmen Dues • 2.Secured Creditors • 3.Unsecured Creditors

  7. Procedure for Waterfall Mechanism All the Liquidated assets are settled in the following manner Liquidation Cost Settling workmen’s Due and Secured Creditors Unsecured Creditors Government Dues Preference Shareholders Equity Shareholders

  8. Voluntary Winding Up • Voluntary Winding up is done if the shareholders or the creditors unanimously decide that the Company must be Dissolved. • It is carried out when the Company • 1.Is unable to run the business • 2.Has achieved its purpose • 3.Is unable to meet its financial • liabilities

  9. Voluntary Winding Up by the Company Call for a Board Meeting Pass a Winding Up Resolution Advertisement Appointment of a Liquidator Preparation of Accounts and Audited Reports Filing of Certified Copies Application for Dissolution Company is Dissolved

  10. Winding Up By Creditors • Creditors can file an application demanding repayment of the Credits from the debtor under section 8 of the IBC. • The Company will be dissolved within 180 days (with an extended Period up to 90 days) by CIRP (Corporate Insolvency Resolution Process) to pay off the debts.

  11. Process of Winding Up by Creditors Financial Creditor – Section 7 Creditors files an application before Adjudicating Authority and Initiate CIRP Under IBC Operational Creditor – Section 9 Declare a Moratorium (Claim Period) Public Announcement of CIRP initiation and call for submission claim Appoint an interim resolution professional (IRP) CIRP completed within 180 days (90 Days) of application

  12. Thank You Unimarks For Contact Us: For Quries & Services: Phone No: +91 8448440403 E-Mail: info@unimarkslegal.com Website: https://www.unimarkslegal.com

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