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WINDING UP BY COURT
A company may be wound up by an order of the Court. This is called compulsory winding up. Section 433 lays down the following grounds where a company may be wound up by the court. 1. 2. 3. 4. 5. 6. Special resolution [Sec. 433 (a)]; Default in filing statutory report, or holding statutory meeting [Sec-433 (6)];. Failure to commence business within time [Sec. 433 (c)]; Reduction of membership [Sec. 433 (d)]; Inability to pay debts [Sec. 433 (e)]; Just and equitable [Sec. 433(f)].
Default in filing P/L Account and B/l or annual Report (Sec 433(g))
As per the new section introduced under companies act 2002 if a company has made a default in filing with the registrar balance sheet and profit and loss account or annual report for consecutive 5 financial year the tribunal may order winding up.
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Consequences of winding up
Intimation to official liquidator and registrar Copy of the winding up in order to be filled with the registrar Order for winding up deemed to be notice of discharge Suits stayed on winding up order Power of the tribunal Responsibility of directors and officers to submit to tribunal audited books of account Effect of winding up order Official liquidator to be liquidator 13