Section 309 of CA 2013 : Section 309: Effect Of Voluntary Winding Up

Explanation using Example

In a hypothetical scenario, consider that a company called XYZ Pvt. Ltd. decided to voluntarily wind up its business on 1st January 2017. Since Section 309 of the Companies Act, 2013, which dealt with the effect of voluntary winding up, was omitted with effect from 15th November 2016, the company's voluntary winding up process would be governed by the provisions of the Insolvency and Bankruptcy Code, 2016, instead of the omitted Section 309. Consequently, the company's management would need to follow the procedures outlined in the new Code for winding up rather than relying on the provisions of the earlier Companies Act.