The Companies Act, 1956
487. Effect of voluntary winding up on status of company.
In the case of a voluntary winding up, the company shall from the commencement of the winding up, cease to carry on its business, except so far as may be required for the beneficial winding up of such business:
Provided that the corporate state and corporate powers of the company shall continue to till it is dissolved.
A company which has resolved to be voluntary wound up may be dissolved in the manner provided by section 497 (5), till then the company has corporate existence and corporate powers. The property of the company does not vest in the liquidator, it continues to remain vested in the company; Hari Prasad Jayanti Lal & Co. v. V.S. Gupta Income Tax Officer, 1966 (1) Com LJ 230: AIR 1966 SC 1481.