Q.24 Define winding up or liquidation of Joint stock company and write only the name of different modes of winding up of a Joint stock company.
“The company is created by law and it is affected by process of law. When a company ceases to exist and its property is administered for the benefits of his creditors and members, it is called winding up or liquidation.”
MODE OR METHODS OF WINDING UP OF JOINT STOCK COMPANY
There are following three modes of winding up of Joint Stock Company.
1. Compulsory winding up by the court.
2. Voluntary winding up
(a) Members voluntary winding up. (b) Creditors voluntary winding up.
3. Winding up under the supervision of the court.