Under the Companies Act, 2013, which one of the following statements about the dissolution of a company…
Under section 248(5) of the Companies Act, 2013, the Registrar may strike off a company's name from the register and publish a notice of it in the Official Gazette. On that…
Choose your answer
Under the Companies Act, 2013, which one of the following statements about the dissolution of a company is correct?
Answer and explanation
Correct answer C
Under section 248(5) of the Companies Act, 2013, the Registrar may strike off a company's name from the register and publish a notice of it in the Official Gazette. On that publication the company stands dissolved. A company may also be dissolved by order of the Tribunal (NCLT): after winding up under section 302, on a scheme of amalgamation under section 232, or after liquidation under the Insolvency and Bankruptcy Code, 2016.
A company is a creature of statute, so its directors cannot dissolve it by a Board resolution. Dissolution is not confined to orders of the High Court; under the 2013 Act winding-up and dissolution orders are made by the Tribunal. Because one of the given choices is correct, "None of the given options is correct" is wrong.
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