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Corporate & Other Laws
Pls refer the below image and explain how the two points highlighted therein are different from each other.
Answers (7)
The only difference is name removal/ strike off is easier, faster and less expensive as compared to winding up as it is suitable for those companies who had already stopped it's operations so just removal of the name of the company from the registrar is enough to cease it's existence.
Removal of the company name (striking off) is different from the order of winding up of the company. Removal of company name from register is usually done for defunct/ non functional companies. It is a quicker method to put an end to a company. However, in certain cases, the shareholders and management of such company have process to revive the company. Winding up is another way to end the company but here the process is lengthy whereby assets and liabilities are settled by liquidator and tribunal.