Question 4
Business UnitsOn which of the following grounds may a company be compulsorily wound up?
- A.the company is making abnormal profits
- B.it did not declare dividends every year
- C.its products compete with that of a government company
- D.it fails to commence business within a year of its incorporation
- E.it fails to make profit within a year of its incorporation
Show the answer and explanation
Answer: D (it fails to commence business within a year of its incorporation)
Explanation
A court may wind up a company that does not start business within a year of incorporation.