What is the definition of liquidation in the context of a company?

Liquidation is a legal process.

• Assets are sold off.

• Debts must be settled.

• Remaining funds go to members.

Fill in the blanks: A liquidator is appointed to manage the ___ and ___ of the company during liquidation.

Assets; distribution of funds

True or False: Only insolvent companies can be liquidated.

False: Both solvent and insolvent companies can be liquidated.

What are the two primary modes of winding up a company as per the Companies Act, 2013?

Winding up by the Tribunal and voluntary winding up.

What circumstances allow a company to be wound up by the Tribunal under section 271 of the Companies Act, 2013?

Winding up by Tribunal is possible.

• Inability to pay debts.

• Special resolution required.

• Fraud or state interest actions.

What is the role of a liquidator during the winding-up process?

The liquidator collects the company's assets, pays off debts, and distributes any remaining funds among the shareholders.

True or False: A past member of a company can be called to contribute if they ceased to be a member more than one year before winding up.

True: Past members are only liable if they ceased membership within one year of the winding up.

What must a company submit to the liquidator within 21 days of a winding-up order?

A Statement of Affairs.

Fill in the blank: A liquidator’s remuneration is primarily calculated as a percentage of the assets ___ and payments made to ___ creditors.

Realised; unsecured

What changes were introduced by the Insolvency and Bankruptcy Code, 2016 regarding winding-up procedures?

Insolvency Code changed winding-up rules.

• Defined 'winding up' clearly.

• Streamlined insolvency initiation process.

• Allows solvent firms to address defaults.

Fill in the blank: The main job of a liquidator is to realise all assets and distribute the proceeds among the right ___.

Claimants