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Corporate & Other Laws
Difference between winding up of company and strike of the name in register
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Striking off is when the Registrar strikes off the name of the company when the company is not in operation or carrying on business. Winding up is the process where the business operation of a company is terminated and its assets are realised and the proceeds are paid to the creditors.
Ashlesha Atal Faculty
Striking off is when the Registrar strikes off the name of the company when the company is not in operation or carrying on business. Winding up is the process where the business operation of a company is terminated and its assets are realised and the proceeds are paid to the creditors.
So can the striking off of the name be done before winding up or after winding up or in both situation?
The Registrar of Companies may remove the name of the Company from the register of companies in terms of section 248 (1) of the Act , if he has reasonable cause to believe that : (a) A company has failed to commence its business within 1 (one) year of its incorporation OR (b) A company is not carrying on any business or operation for a period of 2 (two) immediately preceding financial years and has not made any application for obtaining the status of Dormant Company. So there is no question for winding up in the first instance.
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