Section 277: The Companies Act 2013
Updated: May 9
Section 277: Intimation to Company Liquidator, provisional liquidator, and Registrar
Once the Tribunal passes an order, either interim order or final winding-up order, then the information is disseminated to the Company Liquidator or Provisional Liquidator or the Registrar of the company.
Note: The order shall be intimated within 7 days from the date of passing the order.
Registrar to intimate
Make an endorsement in his record relating to the company
And notify in Official Gazette that such an order has been made
In the case of a Listed company, intimate should be given to Stock Exchange
Note: Winding up order shall be deemed to be notice of discharge of officers, employees, and workmen of the company except when the business of the company is continued.
The company liquidator shall make an application to the tribunal
For the formation of a winding-up committee
To assist and monitor the progress of liquidation proceedings by the company liquidator
Within 3 weeks from the date of a passing winding-up order
Such winding-up committee shall constitute the following person:
Official liquidator attached to the tribunal
Nominee of Secured Creditor
A professional nominated by the Tribunal
Functions of Winding-up Committee
The function of the winding-up committee are to help the company liquidator in carrying out the following functions:
Takeover of assets
Sale of assets
Examine the statement of affairs
Review audit report and accounts
Finalize list of creditors
Compromise and settlement of the claim
Recovery of property, cash, or assets of the company including benefits from them
Payment of dividends
Submission of report by Company liquidator
A monthly report along with minutes of winding up committee meeting duly signed by members present in the meeting is submitted to the tribunal by the company liquidator for consideration of tribunal till the time when the final report for dissolution of the company is submitted before the tribunal.
Preparation of final report
The final report is drafted by the company liquidator to get it approved by the winding up the committee which is further submitted to the tribunal for passing a dissolution order.