Closure of Business
1. Removal of the name of the Company from the Registrar of Companies either on voluntary closure of business by the company on making an application to the Registrar of Companies or process being initiated by the Registrar of Companies suo-moto due to the failure to commence business within one year of its incorporation or if the Company does not have any operations for two financial years and has no assets and no liabilities.
- 2. Winding up of the company can be initiated by the National Company Law Tribunal(NCLT) under various Circumstances mentioned below:
(b) Company has acted against the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality;
(c) fraudulently conducting affairs by a company;
(d) Company has made a default in filing with the Registrar its financial statements or annual returns for five consecutive financial years;
(e) NCLT thinks that it is just and equitable that the company should be wound up.
a) Voluntary liquidation: Solvent companies subject to the approval of the members and creditors can initiate voluntary liquidation of the Company.
b) Liquidation by NCLT or Creditors: NCLT passes orders for liquidation of the company if the resolution plan was not approved or the Committee of Creditors decided to liquidate the company.