Winding-up by a court: reasons therefor

Updated: Aug 20, 2021

A company may be wound up by a court where [1) it passes a special resolution to the effect, (2) it does not commence business within a year of incorporation or suspends business for a year, (3) it is unable to pay its debts, (4) the number of members has fallen below two, (5) it has not received a trading certificate within one year of incorporation if it is a public company, (f) the court considers it ‘just and equitable’ that the company be wound up because, for instance, the substratum has gone or the company is a bubble or the numbers are reduced to two md those two cannot agree and/or are unable to carry on business amicably.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.