CORP · S02Lifting of the Corporate VeilAsked in 4 of 7 papers (Dec ’22, Jun ’24, Jan ’25, Jun ’25)
Under the Companies Act, 2013: A company was incorporated through proved suppression of material facts and has since incurred substantial creditor obligations. After hearing the company, must the Tribunal wind it up once section 7(7) is engaged?
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AYes. The certificate of incorporation leaves winding up as the only available response to later-proved fraud.
BYes. The Tribunal must first erase every transaction and liability entered into after incorporation.
CNo. The Tribunal has a remedial menu, including regulation of management, and must consider existing transactions and obligations.
DNo order is possible unless every creditor first consents to the Tribunal's jurisdiction.
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