Question 16
Business UnitsA company may be wound up when
- A.there is a disagreement among the directors
- B.there are too many shareholders
- C.many of the shareholders die
- D.its product competes with that of the government
Show the answer and explanation
Answer: A (there is a disagreement among the directors)
Explanation
A deadlock among directors that stops the company working is a ground for winding up by the court.