The most important consequences of the winding up of a company are as follows −
● Winding up doesn’t take away the existence of the company completely.
● The company continues to exist as a corporate entity till its dissolution.
● All the ongoing business of the company is administered by the liquidator during the phase of liquidation.
● Contributors − a new statutory liability comes into existence.
● Every transaction of share during the liquefaction done without the approval of the liquidator is termed void.
● The creditors cannot file a case against the company except with the consent of the court.
● If the creditors already have decrees, they cannot proceed with the execution.
● They must explain their claims and justify their claims to the liquidator.
● With the appointment of the liquidator, all the powers of the directors, chief executives and other officers tend to cease.
● Only the powers to give notice of resolution and the power of appointment of the liquidator upon winding up of the company are given to the members.
All the dispositions of the company’s properties are void if the dispositions are not approved by the court or the liquidator.