The MCA has notified the Companies (Winding Up) Rules 2020 for the purposes of sections 271 and 272 of the Companies Act 2013 related to Winding up by the Tribunal. The said Rules will become effective from 1 April 2020. The Rules streamline the procedure for dissolution of companies and provide for 95 different forms (WIN-1 through WIN-95) for various compliances/steps to be followed under the Rules.
Amongst others, for the purpose of section 361(1)(ii) of the Act, the following classes of companies, based on the latest audited Balance Sheet, may be ordered to be wound up by the Central Government by summary procedure, namely: (a) the company which has taken deposit and total outstanding deposits is not exceeding twenty five lakh rupees; or (b) the company of which the total outstanding loan including secured loan does not exceed fifty lakh rupees; or (c) the company of which turnover is up to fifty crore rupees; or (d) the company of which paid up capital does not exceed one crore rupees.
To refer to the notification of the Companies (Winding Up) Rules 2020, dated 24 January 2020, click here.
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that:
The user wishes to gain more information about us for his/her information and use. He/She also acknowledges that there has been no attempt by us to advertise or solicit work.
Any information obtained or downloaded by the user from our website does not lead to the creation of the client – attorney relationship between the Firm and the user.
None of the information contained in our website amounts to any form of legal opinion or legal advice.
All information contained in our website is the intellectual property of the Firm.