DISSOLUTION OF A COMPANY. — SPCC STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceSPCCDISSOLUTION OF A COMPANY.2 Marks
Question
State the appropriate and justified reasons for the extermination dissolution process.
✓
Answer
The court or tribunal has several powers to take the company into liquidation on the basis of due and justified reasons. Based on the reasons mentioned above, the Tribunal may order the company to liquidate:
1. If there is a deadlock, and management of the company is not possible.
2. The Substratum (main purpose) has been lost due to any reason.
3. The company is making consistently losing / losing every year.
4. Where the company was formed to carry on a fraudulent or illegal business or the business of the company becomes illegal by a change in law.
5. If oppressions are done on minority in the company.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.