The Ministry of Corporate Affairs vide notification dated 24th January 2020, has published The Companies (Winding Up) Rules, 2020 comprising of 191 Rules and 95 Forms, applicable for winding up of companies under the Companies Act 2013. The Rules lay down a structured and time bound process for winding up of Companies. The Rules shall be effective from 1st April 2020.
Key Highlights from the Rules:
- The petition for winding up of a company shall be presented in Form WIN 1 or Form WIN 2 and such petition shall be verified by an affidavit made by the petitioner. The statement of affairs, shall be in Form WIN 4 and shall contain information updated shall less than 30 days prior to the date of filing the petition.
- These rules shall be applicable to all types of liquidators unless specified.
- The order for winding up shall be in Form WIN 11 and it shall be sent by the Registrar after it is signed and sealed within a period not exceeding 7 days from the date of receipt of the order by the Registrar, to the Company Liquidator and the Registrar of Companies in Form WIN 12 and Form WIN 13.
- The Companies (Winding Up) Rules 2020 further provides rules for Application for stay of suits etc. on winding up order, Report by Company Liquidator, Settlement of list of contributor, Advisory Committee, Registration and Books of Account to be Maintained by Company Liquidators, Collection and Distribution of Assets in Winding up by Tribunal, Calls in Winding up by Tribunal, Dividends and Returns of Capital in Winding up by Tribunal, Termination of Winding up, Payment of Unclaimed Dividends or Distribution of Assets, Summary Procedure for Liquidation etc.
Click here to read the Notification.
