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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

The name of Zenith Traders Pvt Ltd was struck off by the Registrar and the notice published in the Official Gazette. Some creditors' dues remain unpaid. Which statement is correct?

On Gazette publication the company stands dissolved, yet the liability of its directors, managers or officers exercising management powers, and of its members, continues and may be enforced as though the company had not been dissolved. The Tribunal can still wind it up.

  1. AThe company stands dissolved, but the liability of its directors, managers, other officers exercising management powers and members continues and may be enforced as if it had not been dissolvedCorrect
  2. BEvery liability ends on dissolution, and no one can be pursued
  3. COnly the members remain liable, not the directors
  4. DThe Tribunal loses its power to wind up the company

Explanation

On publication of the notice in the Official Gazette the company stands dissolved. However, the liability of every director, manager or other officer exercising management powers, and of every member, continues and can be enforced as if the company had not been dissolved. The Tribunal's power to wind up a struck-off company is also preserved.

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