The Difference Between Winding up Dissolution of a Company PDF

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In order to legally terminate the existence of a corporation, it must go through two stages: "winding up" and "dissolution." The winding up of a business is a legal procedure that is used to bring about the dissolution of a corporation. Dissolution, on the other hand, is the final conclusion of a p...

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THE DIFFERENCE BETWEEN THE WINDING UP AND THE DISSOLUTION OF A COMPANY:

In order to legally terminate the existence of a corporation, it must go through two stages: "winding up" and "dissolution." The following are the primary distinctions between winding up a business and dissolving a corporation:  The winding up of a business is a legal procedure that is used to bring about the dissolution of a corporation. Dissolution, on the other hand, is the final conclusion of a process of dissolution.

 A winding-up petition is considered and ruled by the Tribunal, while the dissolution of a corporation is documented and registered with the registrar of corporations.

 The procedure of winding up a business involves a judicial function, but the process of dissolving a business is a purely administrative one.

 Even after a company is wound up, the legal entity of the company continues to exist, while a company is dissolved and ceases to exist.

 A company may be permitted to continue doing business for the purpose of facilitating the company's beneficial winding up, although the corporation ceases to exist upon its dissolution....