When is the ‘Declaration of Solvency’ required to be filed with the Registrar of Companies

) When is the ‘Declaration of Solvency’ required to be filed with the Registrar of Companies and what are the provisions of the Companies Act in this regard?

(b) What ae the grounds accepted by Courts as “Just and Equitable Grounds”

to wind up a company? [May, 19911

20. Explain the provisions of the Companies Act, 1956 regulating the preparation and filing of ‘Declaration of Solvency’ in the case of members of voluntary winding up. [CA. (Final) Nov., 19961

21. Explain the powers of liquidator to disclaim onerous properties belonging to the company in liquidation. [CA. (Final) Nov., 19961

22. XYZ Co. Ltd., owes a sum of Rs. 5,000 to S, who assigns this debt t.o his two creditors, viz., R: to an extent of Rs. 4,600, and M : to an extent of Rs. 400. M makes a demand for his money from the company by giving a legal notice. The company could not meet his (M’s) demand or otherwise satisfy him till the expiry of four weeks from the date of notice. M, therefore, moves to the court with a petition for winding up of the company.

Referring to the provisions of the Companies Act, 1956 decide whether M’s

petition can be accepted by the court and company can be wound up.

[CA. (Final) Nov., 19971

23. XYZ Co. Ltd., has its subsidiary company PRM Ltd. which is formed to carry out some of the objectives of XYZ Co. Limited. XYZ Ltd. suspends one of its several businesses, by passing a resolution at the company’s extraordinary general meeting, with effect from 1^st January, 1997. The business so suspended continues to be suspended until March, 1997. On 1^st April, 1997, a group of shareholders of XYZ Ltd., file a petition in the court for winding-up of the company on the ground of suspension of business by the company.

Referring to the provisions of the Companies Act, 1956 decide:

(i) Whether the shareholders’ contention shall be tenable?

(ii) What would be your answer in case XYZ Ltd., suspends all its businesses?

(iii) Can shareholders of PRM Ltd. file a petition in the court for winding up of their company (PRM Ltd.) on the ground that the holding company, viz., XYZ Ltd., has suspended its entire businesses, though PRM Ltd., has not

suspended its business? [May, 19981