Winding Up and Liquidation of Companies Quiz

The circumstances of winding up a company can include insolvency, where the company is unable to pay its debts, or by a special resolution of the shareholders, or by the court if it is just and equitable to do so.

Winding up of a company refers to the process of closing down the operations and liquidating the assets of the company in order to pay off its debts and distribute any remaining funds to the shareholders.

The purpose of winding up a company is to bring its operations to an end in an orderly manner, liquidate its assets, and distribute the proceeds to the creditors and shareholders according to their rights and priorities.