Under Section 271 Companies Act 2013 (post-IBC amendment), a company m…

Question

Under Section 271 Companies Act 2013 (post-IBC amendment), a company may be WOUND UP BY THE TRIBUNAL on the following grounds:

Accepted Answer

D. special resolution to wind up; (b) acted against sovereignty/integrity/security of India; (c) Tribunal opinion that affairs conducted fraudulently; (d) failed to file financial statements/annual returns for 5 consecutive years; (e) just and equitable

1. Section 271 Companies Act 2013, as substituted by the Insolvency and Bankruptcy Code, 2016, prescribes grounds for winding up by NCLT: (a) the company has by SPECIAL RESOLUTION resolved that the company be wound up by the Tribunal; (b) the company has acted against the interests of the SOVEREIGNTY AND INTEGRITY OF INDIA, the SECURITY OF THE STATE, FRIENDLY RELATIONS with foreign States, public order, decency or morality; (c) on application made by the Registrar or any other person authorised by Central Government, the Tribunal is of the opinion that the AFFAIRS OF THE COMPANY HAVE BEEN CONDUCTED IN A FRAUDULENT MANNER or the company was formed for fraudulent / unlawful purpose; (d) the company has made a default in filing with the Registrar its FINANCIAL STATEMENTS OR ANNUAL RETURNS for IMMEDIATELY PRECEDING FIVE consecutive financial years; (e) the TRIBUNAL is of the opinion that it is JUST AND EQUITABLE that the company should be wound up.
2. 'Inability to pay debts' as a ground for winding-up under Section 271(a) was DELETED — that is now under the IBC, 2016 framework.
3. Hence option B is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment)_

Answer

only inability to pay debts, which is now exclusively under the IBC, 2016 — no other grounds (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment)) (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment))

Answer

only failure to appoint a statutory auditor for any one financial year as required (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment)) (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment))

Answer

only failure to maintain minimum paid-up capital, with no other grounds being applicable (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment)) (cf. Companies Act 2013, Section 271 (post-Insolvency and Bankruptcy Code 2016 amendment))