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CS Executive · Company Law and Practice · Dormant Company

The Registrar struck off the name of Zenith Agro Ltd under Section 248 and the company stood dissolved after the Gazette notice. Later, creditors discovered unpaid dues. What is the legal position under Section 248?

Liability of directors, managers, other officers exercising management powers and members continues and can be enforced as if the company had not been dissolved. Section 248(7) says so. Dissolution does not erase liabilities, and the Tribunal can still wind up the company.

  1. ALiability of directors, managers, officers exercising management power and members continues as if the company had not been dissolvedCorrect
  2. BAll liabilities end with dissolution
  3. COnly the Registrar becomes liable for the dues
  4. DThe Tribunal loses all power to wind up the company

Explanation

Section 248(7) states that liability of every director, manager or other officer exercising management power, and of every member, continues and may be enforced as if the company had not been dissolved. Section 248(8) preserves the Tribunal's power to wind up a struck-off company, so the last option is wrong.

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