Section 578 CAMA 2020

Section 578 Companies and Allied Matters Act is about Commencement of a winding-up by the Court. It is under Chapter 21 (Winding-up by the court jurisdiction) of the Act.

(1) Where, before the presentation of a petition for the winding-up of a company by the Court, a resolution has been passed by the company for voluntary winding-up, the winding-up of the company is deemed to have commenced at the time of the passing of the resolution, and unless the Court,on proof of fraud or mistake, deems it fit to direct otherwise, all proceedings taken in the voluntary winding-up are deemed to have been validly taken.

(2) In any other case, the winding-up of a company by the court is deemed to commence at the time of the presentation of the petition for the winding-up.