An analysis on the form and method of winding up of companies

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Under the companies and allied matter act 1990

The Federal High court has been inundated with petition for winding up in recent times.

This is partly as a result of declining fortunes of the Nigeria economy and partly due to bad management.

The liquidation of twenty-six distressed banks should still be fresh in our memory.

As an analyst succinctly put it.

“If a country witness too many liquidations, it means that it is either the country’s economy is in shambles or the particular sector in which such companies operate is not doing well… it is an index of bad management.” The above situation informed the need to re-examine the legal content and an analysis of the form and method of winding up of companies under the companies and allied matters act, 1990.

Winding up is, without doubt, an ultimate remedy available to contributories, the creditors and even the corporate Affairs commission in those circumstance that may bring about compulsory liquidation.

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