Dissolution is the final stage in the "death" of a company. It is often confused with winding up, but they are legally distinct.
Definition: It is the point at which the company’s name is struck off the Register of Companies and its legal personality is extinguished.
The Process:
Winding Up: The first stage where assets are sold and debts are paid. The company still exists as a legal entity.
Dissolution: The final order passed by the Tribunal (NCLT) after the winding-up process is complete.
Effect: Once dissolved, the company can no longer sue or be sued, and it ceases to exist for all legal purposes.
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