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Meaning of Dissolution of a Company

Dissolution of a company means the dissolution of the company by reason of its dissolution in which the company ceases to exist completely. In short, after the dissolution of the company – (i) the existence of the company completely ceases. (ii) No work is done in relation to the company. (iii) The existence of the liquidator of the company also ceases to exist. (iv) Debts are not certified as the company ceases to exist.


When a company transfers its business to another company under the plan of amalgamation or reconstruction, the court does not dissolve such company but orders its dissolution.

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