Winding up a company

It is quite possible that a foreign company can be wound up as an unregistered company. This happens if the company does not carry on business in India any more or also in cases where the corporate body for the same tends to get dissolved or if the same stops altogether in existence in accordance with the law under which it had been initially incorporated. The Act states the detailed provisions with respect to the winding up of a company and also prescribes the winding up modes. The said modes can be either by the court or under its supervision. In addition to that, there is also a provision of voluntary winding up.

There can be several reasons based on which the Tribunal may take the decision of ordering for the wind up of any company. Some of these issues can include situations when the company is found to be acting against the sovereignty and integrity of the country, its security or international relations. In another condition, if the company is found guilty of fraudulent practices or has been reported by the ROC for being indulged in any other sort of unacceptable activities. The Act does not distinguish between the winding-up by members or creditors.