Thinking of closing a Private Limited Company?

Closing of a Private limited company can be due to any reason such as suffering loss, bankruptcy, order by the court, etc. Closing means winding up of a company. Also there are two methods by which a private limited company can be closed.

Methods of winding up:

  • A Private limited company can be closed Voluntarily. Voluntary winding up may be by Member’s or Creditors.
  • A Private limited company can be closed by Tribunal or Court

Procedure for winding up Voluntarily:

  • A Board Meeting to be conducted by the Directors and a resolution is to be passed
  • Then a General meeting is to be conducted after issuing notice and a resolution is passed for winding up.
  • If creditors are of the opinion of winding up of a company they can also voluntarily wind up a private limited company by passing a resolution.

After hearing the petition of winding up if the court is satisfied passes the order of closure of a company or if required appoints a liquidator.

Procedure for winding up by Tribunal:

Winding up of a Private limited company by Tribunal or court should follow certain procedure:

  • The Tribunal or a court shall appoint a Official liquidator by sending him notice of his appointment and will be in charge of the company till the company gets dissolved.
  • The liquidator appointed shall have right to access books of accounts for inspection, liabilities, creditors, loans, etc.
  • Then the official liquidator should prepare a report after inspection and should furnish it before the court.
  • After inspection and if the court is satisfied passes the order of dissolution of the company.

How can Law Tarazoo help?

Our legal experts will help you through the entire process with ease.