Voluntary Liquidation

SIPL provides services to Corporate Debtors opting for Voluntary Liquidation under the Insolvency & Bankruptcy Code, 2016 when its members decide not to continue their business operations. The main objective of Voluntary Winding up under I&B Code, 2016 is to suspend all business operations, dispense its assets and pay off the debts and arrears.
Under the I&B Code,2016, the Key actionable involve-

1.  Declaration / Announcement of Solvency by Board of Directors.
2. Appointment of Insolvency Professional as Liquidator.
3. Authorizing the voluntary liquidation of the company under I&B Code, 2016 and appointment of Liquidator by the Board.
4. Resolutions to be passed in the General Meeting of shareholders approving Voluntary Liquidation and appointment of Liquidator.
5. If the company has creditors, a resolution has to be passed by the creditors who hold 2/3rd of the balance due, within 7 days duration of the decision.
6. The company’s liquidator has to file the voluntary liquidation resolutions to the Registrar of Companies & the IBBI. Being subjected to the creditor’s approval, the voluntary liquidation procedures are considered to have commenced from the date when the members pass the resolution.

• The liquidator/ insolvency professional to take control of the company and go on with further actions, which includes:
• Realization of assets of the company
• Settlement of outstanding dues
• Distribution of proceeds to the stakeholders

7. The company liquidator is obliged to make a public announcement calling shareholders to present their claims in 30 days from the commencement date of the liquidation and thereafter, verify and accept/reject such claims.
8. The liquidator needs to submit a preliminary report addressed to the company.
9. The liquidator has to get a No-Objection Certificate/Letter from appropriate Tax authorities of the area where the company’s registered office is located.
10. The liquidator shall recuperate and realize the company’s assets promptly to maximize the value for the shareholders.
11. The money recognized and ascertained from the proceeds shall be distributed to the shareholders after deducting all liquidation costs.
12. The elected liquidator has to complete the liquidation process of a company within 12 months from the date of commencement of the voluntary winding up the company, under IBC and submit a final report on Liquidation to Registrar of Company, IBBI and Tribunal.