Ways For Closing A Company India With Fast Track Mode Essay

Dhruv Dar, Sanjay Kumar and Vijay Aggarwal wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of

3. Remove the threat to employment, assure employees that it is their company and they will not be

a.) How can you change the name and convert the status of a company from a Private to a Public company?

immediate termination. The Board should also canvas the stakeholders and ask if there is any

must not engage in any activity that would require disclosure to investors under Chapter 6, except for an offer of its shares to existing shareholders of the company or employees of the company or of a subsidiary of the company.

If Ann decides she firmly wants to end Bob’s involvement by winding up the company, she may be able to petition the court for a ‘just and equitable’ winding up of the company. Under section 122(1)(g) of the Insolvency Act 1986 (IA) 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”. In Ebrahimi v Westbourne Galleries Ltd House of Lords confirmed this

According to the principle of the corporate veil, in order to make the shareholders liable for their company’s debt, it considers towards the company structure with the separate legal personality doctrine. Generally, being a shareholder means that they can obtain unlimited company’s profit whereas they are not responsible for more than the amount they invested. Thus, Limited Liability Company is the most favoured business form for investors. As a result, the creditors of the company cannot claim compensation from the shareholders even if the company has insufficient funds to pay its own debts in full.

To combat the position, the company has three options either to use new technology, shift from manufacturing to

Where, upon the commencement of this Act, neither the memorandum nor articles of a company that is a private company by virtue of paragraph (a) of the definition of ‘private company’ in subsection 4(1) contain the restrictions, limitations and prohibitions required by subsection (1) to be included in the memorandum or articles of a company that may be incorporated as a private company, the articles of the company shall be deemed to include each such restriction, limitation or prohibition that is not so included and a restriction on the right to

If the company management decided that it is better to stop the production of product 103, they could do this in one of the following manners:

According to section 16(6) of the Companies Act 1965, upon incorporation, the persons whose names appear in the company’s register of members from time to time shall be the members of the company and together they shall be a body corporate. Under section 16(5) of the Companies Act 1965, the body corporate enjoys separate legal entity with an existence that does not depend on the identity of its members and members of the company shall be liable to contribute to the assets of the company in the event of being wound up. However, the liability of the members will depend on whether the company is a limited company or an unlimited

The title dissolution of partnership is distinct from dissolution of firm. In the dissolution of firm the business of firm is closed and the assets of the firm are sold off and the liabilities of the firm are discharged. Whatever remains after is distributed among the partners in the ratio of their profits or as per the agreement of the firm provides for. In contrast in the dissolution of the partnership only the agreement is dissolved whereas the firm continues to exist.

According to Section 167(1). Naka are in contravention of this because they have not submitted competent accounting records to adequately explain the transactions and financial position of the company to enable true and fair profit and loss accounts and balance sheets in this manner as to make it easier to be audited

B. These alternatives should be listed from the perspective of the individual manager, recognizing all of the responsibilities and the scope of authority, as well as the limitations associated with that position. For example, a feasible alternative may be to sell the business; however, if the manager does not have the authority to do this, it should be eliminated.

A company in Singapore can go for strike-off because of different reasons. Such a thing can happen all the time. Companies are constantly registered, while others are close to liquidation: this is the way the business world functions, as some businesses may work and others may not. Many times liquidation is inevitable, but it is important to strike-off a company with minimal procedural requirements.