ACCA LW · Chapter 11 · Question 2 of 10
Under s122 Insolvency Act 1986, which of the following is a ground on which the court may order a company to be wound up?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The court is of the opinion that it is just and equitable that the company should be wound up
Explanation
The grounds in s122 include a special resolution of the company to be wound up by the court, a public company not obtaining a trading certificate within a year, failure to commence or suspension of business for a year, inability to pay debts, and the just and equitable ground. A single year's loss, a change of name or a director's resignation are not grounds in themselves.
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