Loading...

Close Private Limited Company

A private limited company is also known as the LTD Company. In a private LTD company the shares are limited with the number of the shareholders. The shareholders cannot trade the shares publicly here without the consent of the partners. There could be many reasons for the shutting up the company sometimes voluntarily or by tribunal.

Voluntary Reasons

The Company do not want to run the operations and want to close passing a special resolution

  • There are sometimes occurrence of some events that is mentioned in the articles of association that requires the Company to be shut down
  • If the Company’s duration expires as fixed in the articles of association

Compulsory Reasons

The Company is unable to pay its debts

Tribunal orders the Company to be shut down

When the Company has not filed financial statements or annual return in the preceding five consecutive years

The Company has acted against the sovereignty and integrity of the state and India

If the company engages itself any misconduct or illegal issues. Most of the time the common reasons why the company gets winded up such as Business Loss, Bankruptcy, passing away of the promoters.

Procedure

The procedure of closing of a Company happens as follows:

  1. Board Resolution –Both the Directors must be present or preferably majority of Directors in the Board of Meeting. The Directors of the company, should clear all the debts, and then pass a resolution.
  2. Board Resolution –Both the Directors must be present or preferably majority of Directors in the Board of Meeting. The Directors of the company, should clear all the debts, and then pass a resolution.
  3. A Notice should be filed after 10 days of passing of the resolution to appoint a liquidator
  4. Official circulation –Notification is to be sent to the Official Gazette and advertise should be in the newspaper regarding the closing of the Company within 14 days.
  5. File the certified copies of resolutions and general meeting regarding the closing of the company, within 30 days of the General Meeting
  6. Final General Meeting – A final meeting to be held to dispose the books and papers of the Company
  7. Dissolution – Within 14 days of Final General Meeting, file a copy of the accounts and application to dissolute the Company
  8. Once the tribunal is satisfied with the copies and application, it will pass an order to dissolute the Company within 60 days of receiving the application
  9. Publish notice – On receiving the order from Tribunal, the appointed liquidator files a copy to the Registrar. The Registrar then publishes a notice that the Private Limited Company is now dissolved, which means closed