A company is said to be dissolved when it is ceased to be exist as a corporate entity. After dissolution, the company’s name must be struck off from the Registrar from the Register of Companies. The owner of the company must publish about the dissolution of the company in the Official Gazette. In simple words, we can say that after the dissolution the label of a company puts to an end . After the process of dissolution, the company is ceased to carry on its business. Management affairs shall we withdraw from the director’s hands. After this, an administrator called a liquidator is appointed who takes the control of the entire company in his hands.
II.Meaning of Dissolution of Company:
The dissolution of a company is the last stage after the process of winding up by a liquidator. The process of dissolution of a company resulted in the termination of a legal entity from the company. It is the last process of closure of a company. In this process, A company comes to an end and all the acids and the property of the company get redistributed. The affairs of the company get also terminated after the dissolution of a company
III. Sec 481-Companies Act, 2013
Dissolution of the company:
(1) When the affairs of a company have been completely wound up or when the Court is of the opinion that the liquidator cannot proceed with the winding up of a company for want of funds and assets or for any other reason whatsoever and it is just and reasonable in the circumstances of the case that order of dissolution of the company should be made, the Court shall make an order that the company be dissolved from the date of the order, and the company shall be dissolved accordingly.
(2) A copy of the order shall; within thirty days from the date thereof, be forwarded by the liquidator to the Registrar who shall make in his books a minute of the dissolution of the company.
(3) If the liquidator makes default in forwarding a copy as aforesaid, he shall be punishable with a fine which may extend to five hundred rupees for every day from the defaulting
Voluntarily dissolution of a company:
The dissolution of a company takes place voluntarily by the will of shareholders in the General Meeting or shareholders meeting. In the voluntary dissolution of a company, the assets of the company get realized and the liabilities get paid off. After this, if there is any surplus left then it gets distributed to the members of the company in accordance with their rights.
Dissolution of a company by Tribunal:
According to Section 302 of the Companies Act, 2013, the dissolution of a company by Tribunal takes place
Dissolution of a company by Tribunal states the procedure for dissolution of a company by the Tribunal which is discussed below:
- After winding up of a company, the company liquidator filed an application to the Tribunal for the dissolution of a company.
- Within 30 days, the order shall be submitted by the company liquidator to the registrar who shall record in the register relating to the dissolution of a company.
- If the company liquidator failed to submit a copy of the order within a period of 30 days, it would be punishable with a fine that may extend to 5000 rupees for every day during which the failure continues.