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

The Adjudicating Authority passes a dissolution order for Yamuna Exports Ltd on 5 June under voluntary liquidation. Which statement is correct about the order's effect and onward communication?

The company is dissolved from the date of the Adjudicating Authority's order, 5 June, and a copy of the order must be forwarded within fourteen days to the authority with which it is registered. Seven days applies to resolution notification, not to forwarding the dissolution order.

  1. AThe company stands dissolved from 5 June, and a copy of the order must be forwarded within fourteen days to the authority with which it is registeredCorrect
  2. BThe company stands dissolved only after the Registrar strikes its name, and the copy is forwarded within thirty days
  3. CThe company stands dissolved from the date the liquidator files his final report, with the copy forwarded within seven days
  4. DThe company stands dissolved from 5 June, and the copy is forwarded within seven days to the Board

Explanation

Section 59(8) dissolves the company from the date of the order, and 59(9) requires a copy to be forwarded within fourteen days to the authority with which the corporate person is registered. The seven-day period relates to notifying the Registrar and Board of the resolution, which is why the last option is wrong.

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