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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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