What is Winding Up?
Definition of Winding up
It is a legal process of closing down a company where it liquidates its assets and pay off to creditors.
Explanation of Winding up
The liquidation or winding up a company is a process through which life of company and all its affairs is wound up. The property administered for benefits of its creditors and members. An administrator is the one who is called liquidator and is appointed to take control of the company, collect its assents, pay its debts and finally, if any surplus assents are left, they are divided among the members of the company in proportion to their rights under the articles. This being done the company is dissolved on compliance within the requisite formalities prescribed by the companies’ ordinance.