Companies Act Section 278 — Effect of winding up order

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

An order to wind up a company applies equally to all creditors and all contributories of that company. It is treated as if the order had been made based on a joint request from both creditors and contributories together.

Official Text

The order for the winding up of a company shall operate in favour of all the creditors and all contributories of the company as if it had been made out on the joint petition of creditors and contributories.