Winding-up proceedings are used for which debtor?

• A. A company
• B. An individual
• C. A trust
• D. A partnership

Answer: (B)

Winding-up is the formal process of liquidating a debtor’s affairs and assets, with the aim of paying creditors and dissolving the entity. This procedure is reserved for corporate bodies—the company. When a company cannot pay its debts, it can be compelled to wind up by the court or can wind itself up voluntarily by its members. An individual does not undergo winding-up proceedings; they enter bankruptcy instead. A trust or a partnership has different dissolution or administration routes, but the winding-up process described here is specifically about companies. So, the debtor for winding-up proceedings is a company.