In case of a private company, the process of Winding Up is a mandatory process. In this procedure, a private company is dissolved. The assets of the company are sold, the liabilities are paid off, and the surplus is distributed among the members proportionate to their holdings. This is a common and efficient way to liquidate a private company. The dissolution process is a legally binding procedure and the shareholders are not allowed to terminate the company.

The first step is to convene a board meeting. The board members should declare that the company has no debts. Next, a provisional liquidator is appointed. Within 30 days after the appointment of the liquidator, the directors are required to submit the books of accounts to the liquidator. This procedure may take several months to complete. Once the winding up process is complete, the directors have to give the liquidator a copy of their books of accounts.

After the winding up process is completed, the Registrar must file a petition for the company’s dissolution. This petition must be in Form WIN 1 or WIN 2 and must be filed in triplicate. There should also be an affidavit stating the reasons for the petition. A general board meeting must be held five weeks after the filing of the petition. The Tribunal will make further orders as it sees fit.