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CS Professional · Insolvency and Bankruptcy - Law and Practice · Voluntary Liquidation of Companies

Ashoka Traders Ltd's liquidator has completely wound up its affairs and liquidated all assets under voluntary liquidation. What does Section 59 IBC require next?

The liquidator must apply to the Adjudicating Authority for dissolution. The Authority orders dissolution from the date of its order, and a copy of that order is forwarded within fourteen days to the authority with which the company is registered.

  1. AThe liquidator applies to the Adjudicating Authority for dissolution, and a copy of the dissolution order is forwarded within fourteen days to the authority with which the company is registeredCorrect
  2. BThe directors apply to the Registrar of Companies, who dissolves the company after thirty days
  3. CThe members pass a further special resolution, and the company stands dissolved automatically
  4. DThe liquidator files a closing report with the Board, which issues a dissolution certificate

Explanation

Section 59(7) requires the liquidator to apply to the Adjudicating Authority for dissolution once affairs are wound up and assets liquidated. Under 59(8) the Adjudicating Authority orders dissolution from the date of the order, and under 59(9) a copy goes within fourteen days to the registering authority. The ROC, Board or members do not dissolve the company.

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