Dissolution of Nidhi Company
Dissolving a Nidhi Company in India involves the following steps:
Board Resolution: The first step in dissolving a Nidhi Company is to pass a board resolution in a meeting of the board of directors. The resolution must be passed by a two-thirds majority of the directors present at the meeting.
Shareholder Resolution: After the board resolution, a special resolution must be passed in a general meeting of the shareholders, with the approval of at least three-fourths of the shareholders present at the meeting.
Filing of Form NDH-2: Once the resolutions are passed, the company must file Form NDH-2 with the Registrar of Companies (RoC) within 30 days of the passing of the special resolution.
Settlement of Liabilities: The Nidhi Company must settle all its liabilities, including the repayment of deposits and loans, payment of statutory dues, and any other outstanding liabilities.
Disposal of Assets: After the liabilities are settled, the Nidhi Company must dispose of all its assets and distribute the proceeds among the shareholders.
Filing of Final Returns: The company must file its final returns with the RoC, including the audited financial statements, minutes of the general meeting, and the board resolution for dissolution.
The following documents may be required for the dissolution of a Nidhi Company:
- Board resolution and special resolution for the dissolution of the company.
- Form NDH-2 for intimating the RoC about the dissolution of the company.
- Final financial statements of the company.
- Minutes of the general meeting and the board meeting for the dissolution of the company.
- Proof of settlement of all liabilities and disposal of all assets.
It is important to note that the process of dissolving a Nidhi Company can be time-consuming and complex, and requires the involvement of legal and financial professionals. Therefore, it is advisable to seek the advice of professionals before initiating the process of dissolving a Nidhi Company.