Meeting of creditors required alongside company meeting; creditors may order voluntary winding up or refer for insolvency when debts are doubtful. A company proposing voluntary winding up must convene a meeting of creditors alongside the members' meeting, notify creditors by registered post, and the Board must present a full statement of affairs, list of creditors, the declaration and estimated claims and appoint a director to preside. Creditors by qualified majority may decide voluntary winding up or refer the company for formal insolvency processes if it cannot meet debts from winding-up proceeds. The company must notify the Registrar of creditors' resolutions, and failure to comply attracts prescribed penalties on the company and penal consequences for defaulting directors.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Meeting of creditors required alongside company meeting; creditors may order voluntary winding up or refer for insolvency when debts are doubtful.
A company proposing voluntary winding up must convene a meeting of creditors alongside the members' meeting, notify creditors by registered post, and the Board must present a full statement of affairs, list of creditors, the declaration and estimated claims and appoint a director to preside. Creditors by qualified majority may decide voluntary winding up or refer the company for formal insolvency processes if it cannot meet debts from winding-up proceeds. The company must notify the Registrar of creditors' resolutions, and failure to comply attracts prescribed penalties on the company and penal consequences for defaulting directors.
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