If you are thinking to terminate the existence of the company, you may follow the winding up of the company basic guideline. Winding up of the company ,in literal sense, means to bring to a conclusion or an end by putting in order. Basically, it referred to the process whereby all the affairs of the company are wound up, all its assets are realized, its liabilities paid off and the balance if any is distributed to its shareholders in proportion to their holding in the company. Three kinds of the winding up of the company:

The winding-up by the Tribunal :

· If the company has, by special resolution, resolved that the company may be wound-up by the tribunal;

· If default is made in delivering the statutory report to the registrar or in holding the statutory meeting;

· If the company does not commence its business within a year from its incorporation, or suspends its business for whole of a year;

· If the number of members are reduced then their required number;

· If the company is unable to pay its debts;

· If the tribunal is of the opinion that it is just and equitable that the company should be wound

up;

· If the company is in default in filing up with the Registrar its balance sheet and profit and loss

account for five consecutive financial years;

· If the company has acted against the interests of the sovereignty and integrity of India or security of any state, friendly relation with foreign States, public order, decency and morality;

Voluntary winding-up, which itself is of two kinds:

· Members voluntary winding-up,

· Creditors voluntary winding-up.

Powers of the Court in case of voluntary winding up:

1. It may appoint the Official Liquidator or any other person as liquidator where the appointed liquidator is not acting.

2. It may remove the liquidator and appoint the Official Liquidator or any other person as liquidator on justifiable cause being shown.

3. It may determine the remuneration of the liquidator when the Official Liquidator is appointed as a liquidator

4. It may amend, vary, confirm or set aside the arrangement entered into between a company and its creditors on an appeal made by any creditor or contributory within 3 weeks of the completion of the arrangement

5. On an application of the Liquidator or contributory or creditor, it may determine any question arising in the winding up of a company and it may exercise, as respects the enforcing of calls, the staying of suits or other legal proceedings or any other matter, all or any of the powers which the Court might exercise if the company were being wound up by the Court.

6. It may set aside any attachment, distress or execution started against the assets of the company after the commencement of the winding up on such terms as it thinks fit on an application made by the liquidator, creditor or contributory if the Court thinks fit.

7. It may order a public examination of any person connected with the promotion or formation of the company or any officer connected with the company.

If you are a member of a company planning to file a winding up petition, make sure to contact with a well-experienced company lawyer who suggest you in more detail important issue and concept of winding up of the company.