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CS Professional · Insolvency and Bankruptcy - Law and Practice · Voluntary Liquidation of Companies

The Adjudicating Authority passes an order on 10 March dissolving Lotus Pharma Ltd on the liquidator's application in a voluntary liquidation. Which statement correctly describes the effect and the follow-up requirement?

Dissolution takes effect from the date of the Adjudicating Authority's order, here 10 March, and a copy of the order must be forwarded within fourteen days to the authority with which the company is registered. The seven-day period relates to notifying the resolution, not forwarding the dissolution order.

  1. ADissolution is effective from 10 March, and a copy of the order must be forwarded within fourteen days to the authority with which the company is registeredCorrect
  2. BDissolution is effective from the date the Registrar records it, and the order must be forwarded within seven days
  3. CDissolution is effective from the date of the members' resolution, and the order must be forwarded within fourteen days
  4. DDissolution is effective from 10 March, and the order need not be forwarded to any authority

Explanation

Section 59(8) states the company is dissolved from the date of the Adjudicating Authority's order. Section 59(9) requires a copy of that order to be forwarded within fourteen days from the date of the order to the authority with which the company is registered. The seven-day period relates to notifying the Registrar and the Board of the resolution, not the dissolution order.

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