Section 363 of the Companies Act, 2013
Section 363 of the Companies Act, 2013 deals with the voluntary winding up of a company by the Official Liquidator under certain conditions.
📘 Section 363 – Voluntary Winding Up of Company, etc., by Official Liquidator
Key Provisions:
Power of Central Government:
The Central Government may, by order, direct the Official Liquidator to wind up a company voluntarily, without the intervention of the Tribunal, if:
a) The company has no assets or insufficient assets;
b) The company is not carrying on business;
c) The company’s affairs are not prejudicial to public interest.
Report of the Registrar:
Such a direction can be based on a report submitted by the Registrar, who must be satisfied that the company meets the above conditions.
Process and Procedure:
The Official Liquidator will proceed to wind up the company in such a manner as prescribed by rules under the Act.
Final Report and Dissolution:
After winding up, the Official Liquidator shall submit a final report to the Central Government, which, if satisfied, shall order that the company stands dissolved.
⚖️ Objective:
To simplify and fast-track the winding up of defunct, non-operational, or asset-less companies without burdening the Tribunal.
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