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Which statements are true regarding a company ? (i) Company is a legal person. (ii) Court can lift the…

A company has separate legal personality, its veil can be lifted to address tax evasion, and its shares are transferable subject to applicable restrictions. A deadlock can…

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Which statements are true regarding a company ?
(i) Company is a legal person.
(ii) Court can lift the corporate veil of a company if there is an attempt to evade tax by the company.
(iii) Shares of a company are transferable.
(iv) If there is deadlock in the affairs of a company, the Tribunal cannot order winding up of the company.

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Answer and explanation

Correct answer C

A company has separate legal personality, its veil can be lifted to address tax evasion, and its shares are transferable subject to applicable restrictions. A deadlock can justify winding up on the just-and-equitable ground under section 271(e) of the Companies Act, 2013, so the denial of the Tribunal's power is false.

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