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Asked a question 4 years ago

What is the difference between winding up and dissolution of a firm?

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Given below are some Differences between winding up and dissolution of a firm:

1. Winding Up is first stage where assets/liabilities are realised/paidoff whereas Dissolution is final stage where company ceases to exist.

 2. Winding up is carried on by liquidator appointed by company/court whereas Order for dissolution is given by court only. 

3. Creditors can prove their debts in winding up but not on dissolution .

Dissolution of a firm
Dissolution of a firm

4.The Liquidator does have any important role in the dissolution but the same has very import.ant role in dissolution.

5. Dissolution is a process after winding up of the company.