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CS Professional · Corporate Restructuring, Valuation and Insolvency · Strike Off and Restoration of Name of the Company and LLP

Zenith Agro Pvt Ltd was incorporated 14 months ago. It has never started any business and has no assets or liabilities. Its directors want to close it using the voluntary route. Which statement is correct?

Zenith can apply for voluntary strike off, because a company that has failed to commence business within one year of incorporation qualifies on that ground. No five-year inactivity period or prior Tribunal permission is needed, and winding up is not the only way to close it.

  1. AThe company can apply for strike off of its name because it failed to commence business within one year of incorporationCorrect
  2. BThe company cannot apply until it has been inactive for five financial years
  3. CThe company must first apply to the Tribunal for permission before it can file the strike off application
  4. DThe company can be removed only through winding up by the Tribunal

Explanation

One ground for voluntary strike off is that the company has not commenced business within one year of its incorporation. Zenith's 14 months without any business meets this ground. A long inactivity period or Tribunal permission is not a precondition, and winding up is not the only exit.

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