The Companies Act, 1956
557. Meetings to ascertain wishes of creditors or contributories.
(1) In all matters relating to the winding up of a company, the 1 [Tribunal] may
(a) have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence;
(b) if it thinks fit for the purpose of ascertaining those wishes direct meetings of the creditors or contributories to be called, held and conducted in such manner as the 1 [Tribunal] directors; and
(c) appoint a person to act as chairman of any such meeting and to report the result thereof to the1 [Tribunal] .
(2) When ascertaining the wishes of creditors, regard shall be had to the value of each creditor’s debt.
(3) When ascertaining the wishes of contributories, regard shall be had to the number of votes which may be cast by each contributory.
In all matters relating to winding up of a company, the Court may ascertain the wishes of the creditors and test them on the grounds as to whether the case of the persons opposing the winding up is reasonable and whether there are matters which should be inquired into and investigated if a winding up order is made; Madhu Sudan Gordhandas & Co. v. Madhu Woollen Industries Pvt. Ltd. , 1972 (42) Comp. Cas. 125: AIR 1971 SC 2600.
1.Subs. by Act 11 of 2003, sec. 112, for “Court”.