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MikeLittle.
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MichelleJ
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Are these statements of mine is true:
1) Shareholders can petition to have a company compulsorily wound up. (correct?)
2) Members of the company cannot petition to have a company compulsorily wound up (correct?)
MikeLittle
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There sounds to be a bit of confusion in your understanding here. For our intents and purposes, there really is no difference between ‘members’ and ‘shareholders’
The simple answer to your question is, therefore, it’s not possible for BOTH statements to be correct since they are diametrically opposite in the availability of members / shareholders to make this petition
Where a majority of not less than 75% of members pass a special resolution to the effect that the company should approach the Court and ask for a compulsory winding up order, then in that case, we can validly say that the members CAN petition the Court and, as I have stated above, if you accept that members and shareholders are effectively synonyms, then we can safely say y=that shareholders CAN petion the Court
OK?
MichelleJ
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There is two MCQ in the specimen exam which confused me related to my previous query above!
Q1) 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.
Which of the following parties may petition to have a company compulsorily wound up under that provision?
a) Shareholders of the company
b) Creditors of the company
c) Debentureholders of the company
d) The secretary of stateQ2) Which of the following cannot petition for the compulsorily winding up of a company on the grounds of insolvency under 122 insolvency act 1986?
a) The board of directors
b) The members of the company
c) The company’s creditors
d) The secretary of stateYou can find this specimen exam using this link https://www.accaglobal.com/us/en/student/exam-support-resources/fundamentals-exams-study-resources/f4/lw-specimen-exams/eng-specimen-exam.html
MikeLittle
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Michelle, you’re missing two very important elements from your post!
There is, within the first question, the specified situation of “on the ground that it is just and equitable to do so” and, in the second, there is the situation “on the grounds of insolvency”
These two (out of 5 subsections of the Insolvency Act) identify those persons that are able and those that are precluded from initiating a winding-up petition
OK
MichelleJ
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