Winding up company voluntarily
Many people have heard of companies winding up due to financial crisis. However, it is also possible to wind up company voluntarily without necessarily facing financial hiccups. There are two major reasons why a company may wind up devoid of any wind up orders. If the company was formed to operate only for a certain duration, then it will be wound up after the duration is over. The articles of association may also have indicated that the company would be wound up incase a certain event took place. The second case applies when the company members resolve to wind up the company at the general meeting. The winding up process is supposed to commence immediately after the resolution is passed. This applies even if a court applies petition to have the company wound up after the initial resolution of voluntary winding up. Just like a winding up order, the voluntary winding up resolution means that the company ceases operation immediately unless such operation is deemed necessary or beneficial to the winding up process.
