Companies Act Section 344 — Statement that company is in liquidation

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

Sub-section (1) requires that when a company is being wound up, whether by the Tribunal or voluntarily, every invoice, order for goods, or business letter issued by or on behalf of the company, its Company Liquidator, or a receiver or manager of the company's property, must include a statement that the company is being wound up. This applies to any document where the company's name appears.

Sub-section (2) states that if the company fails to follow the requirement in sub-section (1), the company itself, along with every officer of the company, the Company Liquidator, and any receiver or manager who wilfully allows or permits this non-compliance, will be punished with a fine. The fine must be at least fifty thousand rupees and can go up to three lakh rupees.

Official Text

(1) Where a company is being wound up, whether by the Tribunal or voluntarily, every invoice, order for goods or business letter issued by or on behalf of the company or a Company Liquidator of the company, or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall contain a statement that the company is being wound up.

(2) If a company contravenes the provisions of sub-section (1), the company, and every officer of the company, the Company Liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance, shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees.