Winding up of a company

A secured creditor, the holder of any debentures (including debenture stock), whether or not any trustee or trustees have been appointed in respect of such and other like debentures, and the trustee for the holders of debentures, shall be deemed to be creditors within the meaning of clause (b) of sub-section (1).

· A contributory shall be entitled to present a petition for winding up a company, notwithstanding that he may be the holder of fully paid-up shares, or that the company may have no assets at all, or may have no surplus assets left for distribution among the shareholders after the satisfaction of its liabilities.

However, a contributory shall not be entitled to present a petition for winding up a company unless-(a) Either the number of members is reduced, in the case of a public company, below seven, and, in the case of a private company, below two; or

(a) The shares in respect of which he is a contributory, or some of them, either were originally allotted to him or have been held by him, and registered in his name, for a least six months during the eighteen months immediately before the commencement of the winding up, or have devolved on him through the death of a former holder.

Except, in the case where he is authorized in pursuance of clause (f) of sub-section (1), the Registrar shall be entitled to present a petition for winding up a company only on the grounds specified in 12[clause (b), (c), (d), (e) and (f)] of section 433:




(b) Before the expiration of fourteen days after the last day on which the statutory meeting referred to in clause (b) aforesaid ought to have been held.

Before a petition for winding up a company presented by a contingent or prospective creditor is admitted, the leave of the Court shall be obtained for the admission of the petition and such leave shall not be granted-(a) Unless, in the opinion of the Court, there is a prima facie case for winding up the company; and (b) Until such security for costs has been given as the Court thinks reasonable.