What is the official process of winding up a company as per the Companies Act called?

The official process of winding up a company as stipulated in the Companies Act is referred to as "liquidation." This term broadly encompasses the entire procedure of dissolving a company by selling off its assets, settling its debts, and ultimately breaking up the company structure. Liquidation can occur through various mechanisms, including voluntary liquidation initiated by the company itself or compulsory liquidation ordered by the court.

Understanding the nuances of liquidation is essential in business law, as it determines the rights of creditors, shareholders, and other stakeholders during the dissolution of a business entity. In contrast, the other terms mentioned involve specific types of processes or alternatives to winding up. For instance, voluntary liquidation is a subset of the broader liquidation process, specifically initiated by the company's shareholders, while company voluntary arrangements pertain to an arrangement made to settle debts while avoiding liquidation. A statement of proposals is related to the processes of administration or arrangements but does not represent the winding up process itself. Therefore, the term "liquidation" accurately encapsulates the formal winding-up procedure as established by the Companies Act.