Comparative Analysis of winding up of a Company: Perspectives in UK, USA & India
By Mayank Singhal, LLM, University School of Law & Legal Studies, GGSIPU
& Kanika Goel, LLM, Vivekananda Institute of Professional Studies, GGSIPU
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For the establishment of any institution or organization, there is a prescribed legal process, and this is applicable all throughout the globe. In similar lines, a company gets incorporated while following a legally due process and the same must be kept in mind while it goes into liquidation, be it voluntary or due to any other reason like insolvency. This research studies the regime of winding up of the companies in three different nations namely the United Kingdom of Great Britain, the United States of America, and India. The main aim is to study the efficacy of the legal processes and determining the comparison between the three. Further, this paper also establishes the link between the different practices with respect to the new laws which are coming in, focusing on the Companies Act 2013 and Insolvency & Bankruptcy Code 2016, particularly in the Indian context. The study also attempts to analyze the various problems faced by the companies while they engage in the insolvency and winding-up process. The research also focuses on the historical evolution of insolvency laws while touching upon the drivers of such a process. This study of provisions leads to the exploration of various underlying principles which provides valuable insights. Further, the paper attempts to reach a conclusion by establishing the differences and similarities in the different regimes and analyzing their impacts.