Under Section 219 (f) of the Companies Act, “a company may be wound up by the court, if the court is of the opinion that it is just and equitable, that the company should be wound up.” Companies have been wound up on this ground in the following circumstances:
a)
- Fraudulent or illegal purpose
- Inte Thomas Edward Brinsmead & Sons Ltd
- Failure of the substratum
- Inre German Date Coffee.
- Inre Baku Consolidated Oil Fields.
- Inre Amalgamated Syndicate.?
-Loss of confidence in the management
-Loch v John Blackwood
- Expulsion or exclusion from management- Inre Westbourne Galleries Ltd
- Inre Lundie Brothers Ltd
- The company is „a bubble?
-Inre London and County Coal Ltd
- Oppression of Minority
- Deadlock in management and membership
Inre Yenidje Tobacco Ltd Inre Modern Retreading Ltd)
- All floating charges created by the company crystallize and become fixed.
- The company ceases to carry on business except such as may be required for the beneficial winding up of the company.
- Any disposition of the company?s property including chose in action, any transfers of shares or alteration in the status of members of the company is void.
- Any attachment, distress or execution put in force against the estate or effects of the company is void.
- Actions or legal proceedings by or against the company are automatically stated.
-By virtue of his office, the official receiver becomes the provisional liquidator.
- Director?s powers become functus officia.e. not exercisable.
- Employees of the company are ipso facto dismissed. However, those who continue to render services and receive wages are deemed to have entered into a new contract of service with the liquidator.
marto answered the question on February 6, 2019 at 05:57
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