ACCA · Question 23 · Corporate and Business Law
Two individuals form a private limited company to run a restaurant, each holding 50% of the shares and both acting as directors. After a severe falling out, they refuse to speak to each other, leading to complete management deadlock. The business is still solvent. Under what ground can the court order the compulsory liquidation of the company?
Answer options:
On the ground of inability to pay debts.
On the ground that the company has not commenced business within a year.
On the ground that it is just and equitable to do so.
On the ground of wrongful trading.
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