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The Company is unable to pay its debts
Tribunal orders the Company to be shut down or is of the opinion that the Company is equitable and must be shut down
When the Company has not filed financial statements or annual return in the preceding five consecutive years
The Company has acted against the sovereignty and integrity of the state and India, friendly relations with foreign states, public order, decency or morality
If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct
Voluntary closing of Private Limited Company
This is possible if,
Creditors’ Voluntary Liquidation – The Company and its shareholders chose to liquidate the Company because it can’t pay debts
Members’ Voluntary Liquidation – There Company can pay its debts but the members want to close it
To dissolve a Company, at least 2/3rd of the shareholders must adopt the resolution. The management must submit an application to the Register of Companies along with resolution of dissolution, the minutes of the general meeting
The dissolution resolution and submission of application is followed by liquidation, in a series a steps.
After the Public Limited Company has been liquidated as required, the company management board will have to submit an application to the Register for the deletion of the company from the Commercial Register. This can be done after a minimum of six months of the entry of the dissolution of the public limited company into the Register and providing notification thereof along with a final balance sheet and asset distribution plan to the application for deletion from the Register.
Liquidation of a Public Limited Company is a fairly time-consuming process that lasts at least six months. The activities of a dissolved Public Limited Company can be continued, or a merger, division or transformation of the Company may also be conducted. To do so, the liquidators must submit to the Commercial Register an application for continuing the company’s activities.
Closure is the term used to refer to the actions necessary when it is no longer necessary or possible for a business or other organization to continue to operate. If an organization has debts that cannot be paid, it may be necessary to perform a liquidation of its assets.
It takes at least 3 months for a company to be officially dissolved, but the length of time can vary considerably if the process is complex. Generally, however, a company will cease to exist no less than3 months of the winding-up notice being advertised in the Gazette.
Usually, if you are a director (or acting as a director), you are not personally liable for paying the company's debts. This means that if the limited company does not pay its debts and a creditor takes court action, only the company assets are at risk. However, you can be made personally liable for the following
Outside of their fiduciary duties, directors are not generally held personally liable for the debts, acts or omissions of a nonprofit organization. Nonprofits are typically organized as “nonprofit corporations” under state law, which are considered legal entities separate and distinct from the individuals who run them