The way companies act has prescribed the process for the incorporation of the company in the same way companies act has prescribed the process, conditions, and method for the closure of the company.
As of date, the company act has prescribed two ways/methods to close the company:
- Strike of company
- Winding up of company
As of now in this blog, we will have a preview of the strike off of the company under section 248 of the Companies Act, 2013.
- What is strike off?
If we go by its word for word meaning, the Strike Off means removing the name of Company from the Register of Companies maintained by ROC.
If a company files an application under section 248 (2) in violation of 249(1), it shall be punishable with a fine thatmay be extended to Rs. 1 Lakh.
An application filed under section 248(2) shall be withdrawn by the company or rejected by the Registrar as soon as conditions under sub-section (1) are brought to the registrar’s notice.
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CA Neetu Saini
AKGVG & Associates