A company may be wound up by a tribunal where the petition has been filed under the following circumstances −
● A special resolution is passed by the company that the company shall be wound up by the tribunal.
● Failure of the company in reporting a statutory report at the registrar’s office.
● Non-commencement of the company in business within one year of incorporation.
● Number of members has reduced below 7 for a public company or 2 for a private company respectively.
● The debts of the company are unpayable by the company.
● The tribunal is just equitable to wound up the company.
● The company is unable to file its balance sheet or annual return for five financial years consecutively.
● The company has acted against the sovereignty and integrity of the country.
An application of winding up must be filed with the petition of winding up by the following entities −
● The company
● Any creditor or creditors of the company
● Any of the contributory company
● Any person authorized by the central government
● The state government or the central government
According to the procedures mentioned in section 439-481 of the Companies Act, the tribunal will move on upon the receipt of the petition.