Unregistered Company Definition and Meaning
Unregistered Company is not a defined term in the Companies Act, 1956, but Section 582 of the said act do describe the expression Unregistered Company as below:
An unregistered company, is a company which is not registered or covered under provisions of companies Act. 1956 ( 582)
It shall include any partnership, association or company consisting of more than seven members at the time when the petition for winding up the partnership, association or company, as the case may be, is presented before the Court.
It shall not include –
- a railway company incorporated by any Act of Parliament or other Indian law or any Act of Parliament of the United Kingdom ;
- An illegal association formed against the provisions of the Act ;
- a company registered under this Act ; or
- a company registered under any previous companies law and not being a company the registered office whereof was in Burma, Aden or Pakistan immediately before the separation of that country from India.
Winding Up of Unregistered Company:
- An unregistered company, cannot be wound up voluntarily, or, subject to super vision of court.
- However, the circumstances, in which unregistered company may be wound up, are as follows :
- If the company, is dissolved, or has ceased to carry on business, or is carrying on business only for the purposes of winding up, it’s affairs,
- If the company is unable to pay it’s debt
- If the court is of opinion, that it is just and equitable, that the company, should be wound up.
A creditor, contributory, or company itself by filing a petition, or any person authorized by central government may institute winding up proceedings.
In respect to other aspects, the same provisions and procedure shall follow, as in winding up of registered company.
A foreign company, carrying on business in India, which has been dissolved , may be wound up, as unregistered company.