Introduction on Voluntary Winding Up :

The object of a voluntary winding-up is to enable the members and creditors to settle their affairs among themselves without seeking assistance of the Court but they may apply to the Court for any directions or orders if and when necessary (Section 518). A voluntary winding-up does not necessarily, imply that the company’s business has ceased since such a winding-up may also be necessary in the case of reconstruction or an amalgamation of a company.