Voluntary Liquidation pursuant to section 59(7) of IBC, 2016-Solvent Company Voluntary liquidation is a process of winding up voluntarily without the Court / NCLT intervention. Members of the Company and Creditors, if an

CS Professional · Insolvency - Law and Practice · PYQS · June 2025
Voluntary Liquidation pursuant to section 59(7) of IBC, 2016-Solvent Company Voluntary liquidation is a process of winding up voluntarily without the Court / NCLT intervention. Members of the Company and Creditors, if any, will appoint a liquidator to liquidate all assets and pay to all its creditors. Surplus amount, if any, after meeting all costs and expenses shall be distributed to the members as per the mechanism provided in Section 53 of IBC, 2016. Voluntary liquidation process has to be completed as per Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. With amendment to IBBI regulations for voluntary liquidation dated 31.1.2024, the process for voluntary liquidation has become more transparent, efficient and faster. These amendments have also brought some additional safeguards to protect interest of stakeholders. Based on the above facts answer the following Questions: Is the Company required to continue with ROC Filings Post Commencement of Voluntary Liquidation ?

Answer & Explanation:

The e-filling status of the Company, on successful filing of Form GNL-2 and Form MGT-14, is changed to 'Under Liquidation'. It should be pursued with office of concerned Registrar for change in status. However, in practice that hard copies are insisted by Registrar's office for the attachments to the said Forms i.e., Hard Copy of Declaration of Solvency executed by all the Directors, the Board and Special Resolution passed for approval of VL and appointment of Liquidator, Creditors Approval, if any, Public Announcement in Form A and any other document as may be deemed necessary. Once the hard copies are taken on record by the ROC, the status of the Company is changed to 'Under Liquidation' and thereafter the Company is not required / cannot file any e-forms except GNL Forms, if required.

Topics: Voluntary Liquidation

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