Corporate lawyers in Chennai offer legal support for winding up a company. This service can be essential for companies in distress. It allows them to liquidate assets and pay off debts without further complications. Rajendra Law Office, Advocates, and Attorneys is one of the leading corporate law firms in Chennai and offers this service. Do you need legal help in Chennai or anywhere else in Tamil Nadu? contact the Rajendra Law Office for professional guidance. You will be happy with the level of service you receive here.
Winding up of a company legal procedure
The “winding up” of a company is a legal procedure that companies use to end their operations. It involves the sale of company assets and distributing the proceeds to creditors. The process can take place on a voluntary basis or as a court-ordered procedure.
In a voluntary winding up, members of the company may pass a resolution that the company be wound up and that a liquidator is appointed. The liquidation will then commence, and the company must give notice of the start of the winding up to its creditors.
A voluntary winding up is a relatively simple process. Moreover, it finds uses in both public and private companies. This type of winding up can be triggered by shareholders or contributors, who believe that the company is insolvent and cannot pay its debts.
Voluntary winding up of Companies
When this happens, the creditors of the company can file a court case against it. There they will request that the company forcefully wind up. This is a different process than a voluntary winding up. This usually occurs when the creditors are the first to realize that their bills have not been paid.
If a company is able to pay its creditors in full within 12 months of the start of the winding up, then it can use a Creditors’ Voluntary Liquidation. This is a similar process to the insolvency petition in terms of timings, statutory filings, and procedures, but it has the added bonus of providing a chance for creditors to recover their money.
Depending on how the creditors approach, however, this process can result in a variety of potential issues. For example, if the liquidator attempts to sell any shares at a price below their true market value, the transaction will become invalid. In addition, if the company transfers its assets or makes any other dispositions without the approval of the liquidator, these will be void as well.
As such, it is crucial that creditors are aware of their rights and responsibilities in this situation. The best way to do this is to have a professional lawyer on your side to help you navigate this difficult time.
Lawyer Fees for Winding up a Company in Chennai
The lawyers at Rajendra Law Office LLP will make sure that you are aware of your rights and responsibilities as a creditor in this process. They will also work with you to ensure that the liquidation of your company goes smoothly. Of course, You can protect your interests at all times.
The legal fees for winding up a company will vary depending on its complexity. Some of the costs include a filing fee and a hearing fee. In fact, The filing fee must be paid directly to the court, and you should pay the hearing fee in cash or by cheque.
A professional attorney will be able to provide you with all the details that you need, and they can help you prepare the appropriate documents for filing. Moreover, This includes preparing the proof of debt form and other necessary forms.
Contact Top Corporate Law Firm
A law office that provides legal services in Chennai, Rajendra Law Office is a well-known name in the legal community. The team of lawyers at this office have good corporate experience and knowledge about various areas of Company law. As a matter of fact, This enables them to provide comprehensive legal support to their clients.
The lawyers at Rajendra Law Office have years of experience practicing law and know how to provide quality legal services to their clients. They are experts in various areas of law, including civil, criminal, family, housing, bankruptcy and commercial.
