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CS Professional · Corporate Restructuring, Valuation and Insolvency · Voluntary Liquidation

After liquidating all assets of Sundaram Engineering Ltd in a voluntary liquidation, the liquidator finds its affairs completely wound up. Which sequence correctly describes completion under the Code?

The liquidator applies to the Adjudicating Authority, which orders dissolution effective from the date of its order. A copy of the order is then sent to the authority where the company is registered within fourteen days.

  1. AThe liquidator applies to the Adjudicating Authority; on its order the company is dissolved from the date of the order, and a copy is forwarded to the Registrar within fourteen daysCorrect
  2. BThe liquidator files a final report with the Registrar, and the company stands dissolved from the date of filing
  3. CThe members pass a resolution, and the company stands dissolved on the date of the resolution
  4. DThe liquidator applies to the Board, which passes the dissolution order, forwarded within seven days

Explanation

Under section 59(7) to (9), the liquidator applies to the Adjudicating Authority once affairs are wound up and assets liquidated. The Authority orders dissolution from the date of the order, and a copy goes to the registering authority within fourteen days. The Board does not dissolve the company.

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