The correct answer is D. company is unable to pay its debts.
A company may be wound up by the Tribunal if it is unable to pay its debts. This is known as a compulsory winding up. The Tribunal may order a compulsory winding up if it is satisfied that the company is unable to pay its debts and that it is just and equitable that the company should be wound up.
A company is deemed to be unable to pay its debts if it is unable to meet its debts as they fall due. This includes both debts that are due to creditors and debts that are due to members.
If a company is wound up by the Tribunal, the assets of the company will be sold and the proceeds will be used to pay off the company’s debts. Any remaining assets will be distributed to the members of the company.
The other options are not correct.
Option A is not correct because a company can still be wound up by the Tribunal even if it has passed an ordinary resolution to this effect.
Option B is not correct because a company can still be wound up by the Tribunal even if it does not commence its business within 6 months of its incorporation.
Option C is not correct because a company can still be wound up by the Tribunal even if the number of members is reduced below 7 in the case of a private company.