Process for Voluntary Winding Up

1. Board Resolution:
        o Propose winding up and appoint liquidator.
        o File Declaration of Solvency (Form GNL-2) for solvent companies.
2. Shareholders’ Approval:
        o Pass special resolution (75% majority) in EGM (Section 304).
        o File Form MGT-14 with ROC.
3. Public Announcement: 
        o Publish notice in newspaper and Official Gazette (Section 277).
4. Liquidation:
        o Liquidator settles debts, distributes assets.
5. Final Steps:
        o File final report (Form GNL-2).
        o Apply to NCLT for dissolution; ROC strikes off company.

Process for Compulsory Winding Up

1. Grounds (Section 271):
        o Inability to pay debts, non-compliance, public interest violation.
2. Petition to NCLT:
        o File in Form WIN 1/2 with statement of affairs.
3. NCLT Proceedings:
        o Tribunal appoints liquidator; manages liquidation.
4. Dissolution:
        o NCLT issues dissolution order; ROC strikes off company.

Key Requirements

     • Declaration of Solvency for solvent companies.
     • Liquidator must be a qualified professional.
     • ROC filings: Forms MGT-14, GNL-2.
     • Priority: Secured creditors, workmen, unsecured creditors, shareholders.

Documents Required

    • Resolutions, Declaration of Solvency.
    • Audited financials, liquidator’s report.
    • Forms MGT-14, GNL-2, WIN 1/2 (for compulsory).
    • Publication proofs, creditors’ claims.

Key Considerations

    • Tax clearance required.
    • Listed companies follow SEBI rules.
    • Professional assistance recommended.

Practical Example

   • Solvent company files Declaration of Solvency, passes special resolution, appoints liquidator, settles debts, and applies for NCLT dissolution.