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Compulsory liquidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Compulsory liquidation

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 1, 2017 at 9:56 pm #404915
    accaed
    Member
    • Topics: 23
    • Replies: 0
    • ☆

    Question 26 of the specimen paper asks:

    Section 122 Insolvency Act 1986 provides a number of distinct grounds for applying to have a company wound up on a compulsory basis.

    Which of the following is NOT a ground for the compulsory winding up of a company under that provision?

    A The company has not received a trading certificate within its first 12 months
    B The company has not started trading within the first 12 months
    C The company has suspended its business for 12 months
    D The company has altered its primary business within the first 12 months

    Given that question 8 of the specimen paper and the notes also note that Section 122 Insolvency Act 1986 specifically provides a distinct ground for applying to have a company wound up on the ground that it is just and equitable to do so’ and moreover the notes mention that just and equitable can mean failure of substratum (company has abandoned the purposes on which it what incorporated and entered into activities beyond the general intention it was set up for), why is answer D not covered by Section 122?

    September 1, 2017 at 10:12 pm #404918
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    Surely the answer is option A

    I believe that option D is covered by S122 – similar to the case re German Date Coffee Company

    OK?

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    Posts
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  • The topic ‘Compulsory liquidation’ is closed to new replies.

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