Section 271 of CA 2013 : Section 271: Circumstances In Which Company May Be Wound Up By Tribunal

Explanation using Example

Imagine a company named "Tech Innovations Pvt. Ltd." has been operating in the technology sector for over a decade. However, due to internal conflicts, the shareholders are unable to agree on the future direction of the company. As a result, they hold a meeting and pass a special resolution stating that the company should be wound up by the Tribunal. This decision is made to allow an orderly closure of the company under the supervision of the Tribunal. They file a petition under section 272 of the Companies Act, 2013, invoking Section 271(1), which states that a company may be wound up by the Tribunal if it has, by special resolution, resolved that the company be wound up by the Tribunal. The Tribunal, after reviewing the petition and the resolution, may proceed with the winding-up process as per the Act.