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What is the process for winding up of a company
17-May-2023 (In Corporate Law)
we have a PVT ltd comp,2 directors, me & my friend, we started a educational business in 2011, have taken a franchise.We are in total loss, we never were in profit, how we can close the business, as we are due to pay service tax, Tds, but have no money, if we close we have to pay the penalty to the franchiser and not sure if my partner is too keen - this is the main reason we are not able to close. we are in total mess - currently the business is run by the land lord of the place.- what are are the options, can I opt out, sell my shares(I am 60% & Partner is 40%)what else we can do should do?
To give you an opinion we would have to look at the Memorandum & Articles of Association of the company. The statutory provisions under the Companies Act, 2013 related to winding up would have to be followed.
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Adv. Divyang Chandan
Mumbai | 25+ Answers
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In order to close the business, you need to first settle for clearing the liabilities of like service tax, Tds, and dues to the franchiser for voluntary winding up. FOr creditor winding you can take the help of some of your creditors. One option may name struck off from ROC records and making your company a dormant company.. You can consult me for more legal feasible route and other details
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Adv. Sanjay Lalit
Mumbai | 25+ Answers
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Yes you can sell your shares, but considering the financial situation of the company it is unlikely that you will find a purchaser. You can also consider looking at fast track exit scheme which is being implemented by MCA or apply for voluntary winding up.
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