Reasons for the winding up of a company
When a company is wound up, it does not necessary mean that it has become insolvent. Even a solvent company may be wound up, if the members of the company decide to do so. For instance, a solvent company may be wound up for the purpose of reconstruction and amalgamation. Therefore, winding up of a company are: 1. If the main objects of the company for which it was formed have been accomplished. 2. If the company is unable to carry out its main objects 3. If the company has to dispose of its business or undertaking to another company or concern. 4. If the company has become insolvent (i.e., if the company is unable to pay its creditors in full)
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