Insolvency Law: Basic walkthrough of the legal provisions of the Insolvency Act 2063
What is Insolvency?
Insolvency refers to a situation of financial distress where a company is not able to meet its obligation pertaining to the debts owed and other liabilities. Section 2 (b) of Insolvency Act, 2063 of Nepal, the governing legislation on the matter, defines ‘insolvent’ as a state of being or appearing unable to pay any or all of the debts due or payable in the future to the...
Insolvency
It is governed by Insolvency Act, 2063, which needs to be followed while making an attempt to dissolve the company. It is done against the will of a company for clear reasons only.
Any of the following person/entity can file an application at the court for the institution of insolvency proceedings:
Insolvent company itselfOut of the total creditors of a company which has become...