Private Limited company Closure

After getting clearance from the federal government, the Official Liquidator assigned to handle the process of shutting a private limited company will dispose of all the firm’s assets and property. Following that, all sales must be made with the approval of the federal government. The liquidator will get payment from the gross sale. Any expenses obtained in related with the sale shall be paid by the liquidator out of the gross sale proceedings. The money received by the Official Liquidator will be paid into the public account of India in the Reserve Bank of India (RBI) as per section 349 immediately.

Payments to investors or creditors

1. A firm’s investors or creditors shall be called before the Official Liquidator within 30 days of their appointment to discuss and support their claims or requests for payment from the company. The claims must be made within a time of thirty days in specified format from the receipt of the call from the official liquidator. The liquidator shall investigate and examine the proof of debt or loan lodged by the investors or creditors. Additionally, the liquidator must give the Central Government the list of creditors within 30 days before the deadline for making claims. The liquidator after the approval shall then discharge the debts or loans or dues of the creditors.

Duties of the Official Liquidator

1. The Official appointed Liquidator shall take control or custody of all the property and assets of the company and effects and actionable calls are done by the liquidator to which the company is entitled or seems to be entitled.It covers all of the company’s assets as well as all of its outstanding debts. After receiving the central government’s consent, the official liquidator has the authority to designate an agent or auctioneer to carry out the sale of the company’s assets and properties

Duties and responsibilities of the Official Liquidator

1. The Official Liquidator shall examine and investigate all the affairs of the company and submit a detailed report to the Central Government in the specified format. Any instances of fraud or deceit in the company’s founding, promotion, marketing, or management must be explicitly stated in the report. The Central Government may order a more thorough examination into the matters and affairs of the company if the liquidator’s report reveals any fraud or duplicity committed by the promoters, shareholders, directors, or any other official of a corporation.

Closure-up Order

1. The Central Government may order to start the Closure-up process in the same way as a firm or organisation is wound up by the tribunal after performing a proper inquiry and the Official Liquidator submits a report on all verification steps.