Section 354 of CA 2013 : Section 354: Meetings To Ascertain Wishes Of Creditors Or Contributories

CA 2013

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Explanation using Example

Imagine a company, XYZ Pvt. Ltd., is going through a winding-up process due to insolvency. The Tribunal overseeing the winding-up process decides to apply Section 354 of The Companies Act, 2013, to take into account the interests of the company's creditors and contributories (shareholders).

The Tribunal, in accordance with clause (a), considers the claims of the creditors who have provided evidence of their outstanding debts. It also listens to the preferences of the small shareholders regarding the distribution of the company's remaini...

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