What does WURA mean in LAW & LEGAL
WURA is an acronym for Winding- Up and Restructuring Act. It is a government act that provides a comprehensive legal framework for various aspects of the winding up and restructuring process of companies in India. WURA also outlines the procedure to be followed by companies for dissolution, liquidation, reorganisation, amalgamation, demerger and other related matters. The purpose of this act is to ensure that winding-up and restructuring activities are conducted in a transparent manner, with proper safeguards in place for creditors as well as stakeholders involved in the process.
WURA meaning in Law & Legal in Governmental
WURA mostly used in an acronym Law & Legal in Category Governmental that means Winding- Up and Restructuring Act
Shorthand: WURA,
Full Form: Winding- Up and Restructuring Act
For more information of "Winding- Up and Restructuring Act", see the section below.
Legislations Involved In WURA
The Winding Up and Restructuring Act was enacted by the Indian Parliament on 11th September 2019. It seeks to repeal the Companies Act 2013, which governs various aspects relating to corporate behaviour and corporate insolvency resolution process (CIRP). Under WURA, all companies have to follow certain regulations specified under it like filing any application pertaining to winding up or restructuring with relevant registrar offices etc. Additionally, certain tribunals like the National Company Law Tribunal (NCLT) have been constituted under this act for conducting proceedings related to winding up or restructuring of companies.
Role Of NCLT Under WURA
Under WURA, there is a specific provision stating that only the National Company Law Tribunal (NCLT) will hear cases pertaining to winding up or restructuring of companies. The NCLT consists of both judicial as well as technical members who are appointed by Central Government after consultation with Chief Justice of India (CJI). This tribunal has been constituted with two primary objectives- one being hearing cases related to corporate insolvency resolution process (CIRP) initiated under it; second being adjudicating dispute between parties involved in CIRP. Moreover, NCLT also has powers to direct parties around creditors’ claims and voting patterns when initiating CIRP proceedings against companies which cannot be financially rescued through other means available like debt rehabilitation scheme etc.
Essential Questions and Answers on Winding- Up and Restructuring Act in "GOVERNMENTAL»LAW"
What is WURA?
WURA stands for Winding-Up and Restructuring Act. This act provides guidelines for the process of winding up insolvent companies, reorganizing them, and helping them to become profitable again. It also establishes a framework for setting up a new company in case there is no viable restructuring option available.
Does WURA apply to all companies?
WURA applies to all types of business entities such as companies, partnerships, and sole proprietorships. In addition, the Act also applies to government departments and certain trusts.
What are the main objectives of WURA?
The main objectives of WURA are to protect creditors by providing legal restrictions on how an insolvent company can be wound up; help ensure that assets are distributed fairly among creditors; reduce delays in the restructuring process; provide clear guidance on how the restructuring process should be conducted; and provide an efficient means to restructure debt instead of liquidating assets.
How do I initiate a WURA procedure?
To initiate a WURA procedure, you must first seek assistance from a qualified professional who is familiar with this process. After obtaining advice on the best course of action for your business situation, you can then contact your local court or tribunal for details about winding-up proceedings.
When should I consider using WURA?
If your business has become insolvent and you do not have sufficient resources to pay off creditors or if you need help with restructuring debt, then considering using WURA may be beneficial in resolving your financial difficulties and restoring your company’s profitability.
Is there a particular timeline associated with bringing forward a WURA proceeding?
All steps involved in initiating a WURA proceeding must follow statutory timelines set out in the Winding-Up and Restructuring Act. Generally speaking, it is important to submit all necessary documents as soon as possible so that proceedings can commence without delay.
What sorts of things does my application need to include when bringing forward a proceeding under the Act?
When submitting an application for winding-up under the Act, it must include information such as the name and address of the company being wound up; amount owed by each creditor; number of directors/shareholders; description/value of any assets owned by the company being wound up; statement identifying any potential conflict of interest issues or potential breaches involving officers of the company, etc.
What happens after I submit my application under the Winding-up & Restructuring Act?
After submitting applications under this Act, each application will be reviewed by appointed trustees who will assess its merits before making their decision whether or not to proceed with winding up proceedings. They will also establish if there is any possibility for restructuring existing debt obligations which could result in avoiding liquidation altogether.
Final Words:
In conclusion, it can be said that Winding-Up and Restructuring Act (WURA) provides a comprehensive legal framework for tackling issues arising out of financial distress faced by companies in India today. Its primary objective is to protect interests of creditors while allowing businesses time and flexibility for sorting their financial woes through corporate insolvency resolution process (CIRP). For this purpose NCLT has been established which will conduct proceedings related towards timely resolution along with taking necessary actions against those entities not following regulations mandated under this act.