Winding up subject to the supervision of the court.
Under Section 304 of the Act, if a company has passed a resolution for voluntary winding up, the court may on application of the official receiver or other person order that the winding up continue, voluntary but subject to the courts supervision.
Under Section 305 a petition for the continuance of a voluntary winding up subject to the supervision of the court is deemed to be a petition of winding up the court. A winding up subject to supervision the court has 2 advantages:
(a) The court may while making the order or a subsequent order appoint an additional liquidator for the company. The liquidator so appointed has the same
powers and subject to the same obligations as one appointed in a voluntary winding up and the court is empowered to remove him from office and fill any vacancy occasioned his death, removal or resignation.
(b) Creditors and contributories have the liberty to apply to the court for any orders necessary for beneficial winding up. Under Section 308(1) of the Act, where an order is made for winding up subject to the courts supervision, the liquidator may subject to any restrictions imposed the court exercise all the powers without the sanction or intervention of the court in the same manner as if the company were being wound up voluntarily.