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JAMB Commerce 1997 Question 12

Question 12

Business Units

In which of the following circumstances is a court order NOT necessary for the winding up of a company?

  1. A.suspension of business for one year.
  2. B.special resolution of members
  3. C.reduction in the number of members below the legal minimum
  4. D.inability to pay its debts.
Show the answer and explanation

Answer: B (special resolution of members)

Explanation

When members pass a special resolution, the company is wound up voluntarily without a court order. The other cases are grounds for compulsory winding up by the court.