Section 274 - Modes of winding up

(1) The winding up of a company may be

(a) by an official liquidation in accordance with the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180), or

(b) by a private liquidation in accordance with this Part.

(2) The company shall, from the commencement of the winding up cease to carry on business except so far as may be required for the beneficial winding up of the company, but the corporate state and corporate powers of the company shall continue until the company is dissolved.

(3) Where a company is being wound up by way of a private liquidation, any invoice, order or business letter issued by or on behalf of the company or a liquidator of the company or a receiver or manager of a property of the company, which is a document in or on which the name of the company appears, shall contain a statement that the company is being wound up under this Part.

(4) Where default is made in complying with subsection (3), the company and an officer of the company and a liquidator, receiver or manager that is in default commits an offence and is liable on summary conviction to a fine of not less than fifty penalty units and not more than one hundred penalty units.