Section 344 of the Companies Act, 2013
Section 344 of the Companies Act, 2013 deals with the offence of fraudulent conduct of business during winding up.
🔹 Section 344 – Statement that a company is in liquidation
Key Provisions:
Requirement to Mention Liquidation Status:
In every invoice, order for goods, or business letter issued by or on behalf of the company or the liquidator (while the company is being wound up), it must be stated clearly that the company is being wound up.
Penalty for Contravention:
If the liquidator, company, or any officer fails to mention that the company is in liquidation as required:
They shall be liable to a penalty of ₹50,000.
📘 Objective:
This section is intended to protect the interests of creditors, suppliers, and other stakeholders by ensuring they are aware that the company is under liquidation and may not be able to meet its obligations fully.
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