Section 271 Companies Act 2013 Circumstances in which company may be wound up by Tribunal
Updated: Oct 12, 2022
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The company may require to wound up by the tribunal under section 271 under the following circumstances:
1. In case the company does not pay the debts, the debt of the creditor exceeding Rs 1 lakhs is due and unpaid by the company within 21 days from the due date, or any execution decree is passed in favour of the creditor or tribunal has a reason that company will not pay off any debts then company would be liable for winding up.
2. In case a company has made the provisions by passing a special resolution that wound up is made by the tribunal.
3. In case of sick companies if no revival and rehabilitation is done, then tribunal may order for the winding up of a company.
4. In case the company is formed in a fraudulent manner, or it has reason to believe that the activity of the business is conducted fraudulently then that company is liable to be wound up by the tribunal.
5. In case the formation of the company is for any unlawful purpose, or the management of the company is guilty of misconduct or misfeasance, then winding up is necessary by the tribunal.
6. In case the company fails to submit annual returns and financial statements of the last five financial years continuously then the registrar made the company defaulter n liable for winding up.
7. If the tribunal has the opinion that winding up of a company is necessary for the good faith of the company.