The Government has said that according to a recent study, it takes an average of about 10 years to complete a company liquidation process in India. Giving this information in reply to a question in the Rajya Sabha, the Minsiter for Corporate Affairs, Shri Salman Khurshid told the House that the Companies Bill, 2009, which seeks to replace the existing Companies Act, 1956 provides for summary winding up proceedings in case of companies having assets of book value not exceeding one crore rupees. Such proceedings are likely to be useful for speedy winding up of small and medium companies. The Bill was introduced in Lok Sabha on 03.08.2009 and is presently under consideration of Parliamentary Standing Committee on Finance.
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This is definitely a very grave matter, especially for the stake holders and the creditors, including the tax departments, banks &c. The government can indeed think of inviting public opinion on finding out a better solution in respect of all companies.