• 10 Marks

BCL – L1 – Q93 – Legal implications relating to companies in difficulty or in crisis

Identify five situations where a court can order a company to wind up.

Identify FIVE (5) situations in which a company can be ordered by court to wind up.

Situations in which a company can be ordered to be wound up. a Suspension of authorized business for a whole year a Company has no members. a Business or objects of the company are unlawful. a Company is operating an illegal purpose. a Company is unable to pay its debts. a If court determines that it is just and equitable

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