The Ministry of Corporate Affairs (MCA) through a notification dated January 24, 2020, notifies the Companies (Winding Up) Rules, 2020 will be effective from April 1, 2020, which consists of Rule 1 to 191 and Forms WIN 1 to WIN 95, which pertains to the winding up of a company under the Companies Act, 2020.
The word ‘winding up’ is a process in which the dissolution of a company is brought about in which its assets are applied in the payment of its debts. After the payment of the debts, if in case any amount remains then that is paid to the members in proportion to the share or share capital held by them.
Basically, the Companies (Winding Up) Rules, 2020 provides the rules for prominent ways pertaining to winding up of a company namely Winding up by Tribunal; Liquidators; Winding up Order; application for the stay of suits, etc. on winding up order; report by Company Liquidator under Section 281; settlement of list of contributors; Advisory Committee, meeting of creditors and contributors and their proxies; registration and book of account to be maintained by the companies liquidators; investments of surplus funds; filing and audit of Company Liquidator’s account; winding up by tribunal debts and claims against the company other than summary winding up; attendance and appearance of the creditors and contributories; collection and distribution of assets, calls in winding up by the tribunal; examination under Section 299 and 300; application against the directors or promoters or officers; compromise of claims; sale by company liquidators; dividends and returns of capital in winding up by the tribunal; termination of winding up; payments of unclaimed dividends and the summary procedure for liquidation.
The Companies (Winding Up) Rules, 2020 elaborate on the procedure in which the winding up of a company can be commenced.
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