WINDING UP OF A COMPANY

BEEMA-PAKISTAN COMPANY LIMITED

Presented By: Sidra Najam

Faryal Afzal

MEANING OF WINDING OFF

Winding up is a process of putting an end to the life of a company.

It is a proceedings by means which company is dissolved.

All its assets are collected and debts are paid off.

MODES OF WINDING UP

Three modes of winding up are:

1 Compulsory winding up by court.

2 Voluntary winding up.

3 Winding up under the supervision of court.

Persons Who May Petition For

Winding upThe following may petition:

a. Company.b. Creditors.c. Contributory.d. The trustee or the personal representatives.e. The official receiver.f. Registrar.g. Any person authorized by Central Govt.

Process of Winding up

The process of winding up begins after the Court passes the order for winding up. During this process;

1. The assets are disposed off.

2. Debts of the company are paid off out of the realized assets.

3. If remained with any surplus that is distributed among the members as per their share holding.

CONSEQUENCES OF WINDING UP

As a Shareholder:

A shareholder is liable to pay the full amount up to the face value of the shares

held by him. Both past and present members are liable

in the winding up of a company.

As a Creditor:

In case of a solvent company, all claims of its creditors when proved are fully met.

As a Management:

On appointment of liquidator, all the powers of the directors, chief executive and other officers, shall cease.

Except for the purpose of giving notice of resolution to wind up and appointment of liquidator and filing of consent of liquidator etc.

INTRODUCTION OF THE COMPANY

Beema Pakistan Company Ltd. offers insurance services. The company was incorporated in 1960 as Khyber Insurance Company Ltd.

In 1994 it was renamed Heritage Insurance Company Limited.

On November 22, 2000 infusion of new capital, management, and a new name, Beema-Pakistan has made a new debut.

Status & Nature of Business: In 1960, the company was incorporated under the Companies Act,

1913. It was engaged in the general insurance business.

Mode of Wind up:The mode of wind up of Beema-Pakistan Company Limited went

through a Court wound up in year 2007.

Listing:The company was a Public Limited and was listed in the Karachi Stock

Exchange.

Period of Operations:The Beema-Pakistan Limited Company was operated for a period of

forty seven years; from 1960 till 2007.

Bankers:

My Bank Limited NIB Bank Limited MCB bank Limited Bank Alfalah Limited Allied Bank of Pakistan Limited KASB Commercial Bank Limited Standard Chartered Bank Limited

Directors: The total number of directors of the company was 7.

Steps Involved in winding up of Beema-Pakistan Company Limited

The following steps were taken in winding up by the court Beema-Pakistan Company Limited:

a. Beema-Pakistan Company Limited pass Special Resolution by 3/4th majority of the members of the company that the company be wound up by the Court in case if the company itself intend to file a petition and to file the Special Resolution on Form 26 with the registrar.

b. The members approved the above resolution in the Annual General Meeting as “Special Resolution”.

c. Beema-Pakistan Company Limited prepare a list of the assets to ascertain that the company is unable to pay its debts.

d. Beema-Pakistan Company Limited prepare a list of the creditors.

e. In case Beema-Pakistan Company Limited defaults in payments the creditor or creditors to make a decision for the filing of the winding up petition.

f. Beema-Pakistan Company Limited; in case if the Commission or Registrar or a person authorized by the Commission intend to file a petition, they should not file a petition, for winding up of the company, unless an investigation into the affairs of the company has revealed that it is carrying on a business not authorized by its memorandum.

g. Last, Beema-Pakistan Company Limited engages advocates for the preparation and filing of the petition.