Voluntary Winding up by Shareholder
A limited company, which is formed and registered under the Companies Ordinance, can be wound up. The term “winding-up” (or “wound-up”) bears a similar meaning of “liquidation”. It generally means that all the assets of the company would be realised (sold off and converted to cash) through a legal process in order to repay its debts. Winding-up would bring a company to an end.
If a company is solvency (meaning having sufficient assets to pay its liabilities in full) the shareholders can decide to place the company into Members Voluntary Wingding Up. This process is controlled by the shareholders of the company.
With 75% or more voting right shareholders in the same class can initiate the winding up procedure by conducting a general meeting and resolve such special resolution.
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