A company may be wound up by a tribunal where the petition has been filed under the following circumstances −
● A special resolution is passed by the company that the company shall be wound up by the tribunal.
● Failure of the company in reporting a statutory report at the registrar’s office.
● Non-commencement of the company in business within one year of incorporation.
● Number of members has reduced below 7 for a public company or 2 for a private company respectively.
● The debts of the company are unpayable by the company.
● The tribunal is just equitable to wound up the company.
● The company is unable to file its balance sheet or annual return for five financial years consecutively.
● The company has acted against the sovereignty and integrity of the country.
Application of Winding Up
An application of winding up must be filed with the petition of winding up by the following entities −
● The company
● Any creditor or creditors of the company
● Any of the contributory company
● Any person authorized by the central government
● The state government or the central government
According to the procedures mentioned in section 439-481 of the Companies Act, the tribunal will move on upon the receipt of the petition.