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.

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