Section 277 Of Companies Act 2013

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.

Company Liquidator

• 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

Constitution

Such winding-up committee shall constitute the following person:

1. Official liquidator attached to the tribunal
2. Nominee of Secured Creditor
3. 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:

1. Takeover of assets
2. Sale of assets
3. Examine the statement of affairs
4. Review audit report and accounts
5. Finalize list of creditors
6. Compromise and settlement of the claim
7. Recovery of property, cash, or assets of the company including benefits from them
8. Payment of dividends
9. Other functions

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.