If Part 3 asks:
“Who does the company owe?”
Part 4 asks:
“What does the company own?”
A company undergoing winding up may
still have:
- old
receivables;
- security
deposits;
- electricity
or lease deposits;
- income-tax/GST
refunds;
- investments;
- shares
in subsidiaries;
- trademarks
and patents;
- domain
names;
- software
or other intellectual property;
- immovable
property;
- loans
and advances;
- insurance
claims; or
- balances
lying in dormant bank accounts.
Under Section 283, the
Company Liquidator is required to take custody or control of the property,
effects and actionable claims to which the company appears entitled.
Section 290 further provides the
Company Liquidator with powers and duties relating to the company's property
and affairs.
The winding-up committee under Section
277 specifically assists in taking over assets, recovery of property and
cash, and sale of assets.
Practical issue
An asset does not cease to belong
to the company simply because nobody has looked at it for ten years.
Before dissolution, the asset may
need to be:
identified → recovered → valued →
realised/transferred → accounted for
Main takeaway
A company cannot be properly wound
up until its assets are identified and dealt with as carefully as its
liabilities.
This Article has been compiled by Shallu Garg (Senior Associate).
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