All activities, starting from the formation to liquidation of a company are governed by the Companies Act, 1956. The final stage of liquidation of a company is called dissolution. Dissolution or winding-up of a company is the process by which the existence of a company is ceased. A company that has been dissolved fails to exist as a separate legal entity. It is no more capable of holding any property or asset, and no lawsuit can be filed against it with the National Company Law Tribunal. The assets and property of the company are redistributed among the members of the company and its liabilities are paid off.