Definition
The process of closing down a company by liquidating its assets, paying off creditors, and distributing the surplus (if any) to shareholders. Under the Companies Act, 2013 (Sections 270–375), courts can wind up companies for various reasons including inability to pay debts. The IBC now provides an alternative insolvency-based liquidation process through the NCLT that has largely replaced winding up for insolvent companies.
Related Terms
IBCNCLTCompanies Act
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates