The winding up or liquidation of a company is the process by which a company's assets are collected and sold in order to pay its debts. If Any Payments remaining after all debts, expenses and costs have been paid off are distributed amongst the shareholders of the company. Compulsory winding up takes place when a creditor of an insolvent company asks the court for a wind up. If the company goes into liquidation, the court of law appoints a liquidator for the liquidation. After the name is struck off, the company ceases to exist anymore.
According to Section 425 of the Companies Act, 2013, there are 2 kinds of Winding Up.
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