Section 309 of the Companies Act, 2013
Section 309 of the Companies Act, 2013 deals with the Winding up by Tribunal.
📜 Section 309 – Winding Up by Tribunal
🔹 Key Provisions:
Tribunal’s Power to Order Winding Up:
The National Company Law Tribunal (NCLT) may order the winding up of a company on an application made by:
The company itself,
Any creditor,
Any contributory, or
The Central Government.
Grounds for Winding Up:
The winding up may be ordered on any of the grounds specified under Section 270 (or elsewhere in the Act), including:
Company unable to pay its debts,
Just and equitable grounds,
Failure to commence business within a year,
Reduction below minimum number of members,
Special resolution by members, etc.
Process:
The Tribunal will consider the application and may pass orders directing the company to be wound up, appoint a liquidator, etc.
Effect:
After the order, the company is in the process of liquidation, and its assets will be realized and distributed among creditors and members according to law.
✅ Purpose:
To provide a legal mechanism for orderly winding up of companies when they are no longer viable or functioning as per the law or stakeholders’ wishes.
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