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6. COMPANY CLOSURE
Closure of a company or as is more commonly referred, winding up of a company, is a process whereby all the affairs of the company are wound up, all assets sold, liabilities paid off and the balance, if any, is distributed to its shareholders in proportion to their holding in the company. An administrator, called a liquidator, is appointed; he collects the debts of the company and distributes any surplus among the members in accordance with their rights.
6.1 Modes of Winding Up A Company may be wound up in any of the following modes
l Compulsory winding up by the court l Voluntary winding up i. e.- members’ voluntary winding up- creditors’ voluntary winding up
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