Q.26 Enumerates reasons for the compulsory winding up of a Joint stock company by the court.
There are following reasons for the compulsory winding up of the joint stock company.
A company may be wound up by the court if a special resolution is passed for this purpose.
2. FAILURE TO COMMENCE BUSINESS
When the company does not commerce business with in a year from its incorporation or suspends l3usiness for a year.
3. STATUTORY REPORT OR MEETING
Where default is made in submitting the statutory report to the registrar’s office or in holding the statutory meeting with in prescribe time or any two consecutive annual general meetings under Section 305(b) in Company ordinance 1985.
4. REDUCTION IN NUMBER OF MEMBERS
Where the number of members of public company is reduced below seven or in case of company below two
INABILITY TO PAY DEBTS
Were the company is unable to pay its debts in the following situation.
(1) If a creditor whose debt exceeds Rs. 50,000 or one percent of its paid up capital which ever is less under Section 30, (a) has served notice requiring payment and is not paid within 10 days.
(2) If execution in favour of creditor remains unsatisfied or
(3) If the court is fully satisfied that the company is quite unable to pay its debts.
6. COURTS DECISION
When the court is of the opinion that it is just and equitable that the company should be wound up due to its mismanagement dead – clock fraudulent or ay other reasonable grounds.