Section 250 Companies Act 2013 Effect of company notified as dissolved
Updated: Oct 17, 2022
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Introduction
The Companies Act 2013 is the law covering incorporation, dissolution and the running of companies in India. The Act came into force across India on 12th September 2013 and has a few amendments to the previous act of 1956. It has also introduced new concepts like a One Person Company.
Meaning of a Company
There are many definitions of a Company by various legal experts. However, Section 2(20) of the Companies Act, 2013, defines the term ‘Company’ as follows: “Company means a company incorporated under this Act or under any previous company law.”
Features of a Company
• A Company is a Separate Legal Entity
• Perpetual Succession
• Limited Liability
• Artificial Legal Person
Chapter XVIII (Section 248–252) of the Companies Act, 2013 (CA 2013) deals with the provisions related to removal of names of companies from the register of companies. Section 250 of CA 2013 provides for effect of company notified as dissolved.
The provisions of section 250 is effective from 26th December, 2016.
Section 250 of Companies Act 2013:
Effect of company notified as dissolved Section 250 shall come into force on 26th December, 2016 vide Notification No. S.O. 4167(E) dated 26.12.2016. Where a company stands dissolved under section 248, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.