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Good day
sir lm facing difficulties in understanding why B is the correct answer. I read from the kaplan text that the winding up is deemed to have started on the date the petition was presented. Is there any difference between issuing an order and issuing a petition?
Q1. which of the following is NOT an automatic consequence of a compulsory winding up order against a public limited company?
A. Transfers of shareholdings are suspended
B. Liquidation is deemed to start on the date of the issuing of the order
C. Directors cease to exercise any management power
D. Employees are immediately dismissed.Is there any difference between issuing an order and issuing a petition?
Hi, yes … there is a difference
When a person is asking the Court for an order to wind up a company by Court order, that act of “asking the Court” is also known as “petitioning the Court”
So you go along to Court and petition the Court to grant an order to wind the company up
When, eventually (days? weeks? or maybe even months?) the Court does grant such an order, the effective date of the commencement of the winding up is the date on which the petition was presented to the Court
It is, of course, possible that the Court will refuse to grant the order to wind up the company!
So, in summary, the correct answer should be option B because the liquidation is deemed to start not on the date of the issuing of the order but instead on the date that the petition was presented to the Court
OK?
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