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CSEET · Business Laws and Management · Elements of Company Law

Sunrise Agro Ltd was incorporated by furnishing false information and suppressing a material fact. On an application, the Tribunal is satisfied that the situation so warrants. Which of the following orders is NOT among those specifically listed in Section 7(7)?

Directing conversion into a public company with fresh shares is not listed. Section 7(7) specifically lists regulating management, making member liability unlimited, removing the company's name from the register and winding up, besides other orders the Tribunal deems fit.

  1. ADirecting that the liability of the members shall be unlimited
  2. BDirecting removal of the name of the company from the register of companies
  3. CPassing an order for the winding up of the company
  4. DDirecting that the company be converted into a public company with fresh sharesCorrect

Explanation

Section 7(7) lists regulation of management including changes in memorandum and articles, unlimited liability of members, removal of name, winding up, and other orders as it deems fit. A specific conversion into a public company is not listed. The Tribunal must also give the company a hearing and consider its transactions.

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