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

Liquidator Rohit Bansal has completely wound up the affairs of Sagar Foods Ltd and fully liquidated its assets in a voluntary liquidation. What must he do next to bring about the company's dissolution?

The liquidator must apply to the Adjudicating Authority for dissolution once affairs are completely wound up and assets completely liquidated. The Authority then passes an order dissolving the company from that date. A Registrar notice or fresh resolution cannot substitute for this application.

  1. AApply to the Adjudicating Authority for dissolution of the companyCorrect
  2. BFile a dissolution notice only with the Registrar of Companies
  3. CObtain a fresh special resolution of members approving dissolution
  4. DWait for the Board to pass a dissolution order

Explanation

Section 59(7) requires the liquidator, once affairs are completely wound up and assets completely liquidated, to apply to the Adjudicating Authority for dissolution. The Authority then orders dissolution from the date of the order. Neither a Registrar notice nor a new resolution replaces this step.

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