306. Meeting of creditors
(1) The company shall along with the calling of meeting of the company at which
the resolution for the voluntary winding up is to be proposed, cause a meeting of its creditors
either on the same day or on the next day and shall cause a notice of such meeting to be sent
by registered post to the creditors with the notice of the meeting of the company under
section 304.
(2) The Board of Directors of the company shall—
(a) cause to be presented a full statement of the position of the affairs of the
company together with a list of creditors of the company, if any, copy of declaration
under section 305 and the estimated amount of the claims before such meeting; and
(b) appoint one of the directors to preside at the meeting.
(3) Where two-thirds in value of creditors of the company are of the opinion that—
(a) it is in the interest of all parties that the company be wound up voluntarily,
the company shall be wound up voluntarily; or
(b) the company may not be able to pay for its debts in full from the proceeds of
assets sold in voluntary winding up and pass a resolution that it shall be in the interest
of all parties if the company is wound up by the Tribunal in accordance with the
provisions of Part I of this Chapter, the company shall within fourteen days thereafter
file an application before the Tribunal.
(4) The notice of any resolution passed at a meeting of creditors in pursuance of this
section shall be given by the company to the Registrar within ten days of the passing
thereof.
(5) If a company contravenes the provisions of this section, the company shall be
punishable with fine which shall not be less than fifty thousand rupees but which may
extend to two lakh rupees and the director of the company who is in default shall be punishable
with imprisonment for a term which may extend to six months or with fine which shall not be
less than fifty thousand rupees but which may extend to two lakh rupees, or with both.