{"id":34629,"date":"2024-04-15T09:33:31","date_gmt":"2024-04-15T09:33:31","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=34629"},"modified":"2024-04-15T09:33:31","modified_gmt":"2024-04-15T09:33:31","slug":"which-of-the-following-statements-are-true-in-context-of-a-company-under-company-act-2013-1-a-company-can-become-a-member-of-another-company-2-members-voluntary-winding-up-takes-place-when-the-c","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-in-context-of-a-company-under-company-act-2013-1-a-company-can-become-a-member-of-another-company-2-members-voluntary-winding-up-takes-place-when-the-c\/","title":{"rendered":"Which of the following statements are true in context of a company under Company Act, 2013? 1. A company can become a member of another company 2. Member&#8217;s voluntary winding up takes place when the company is insolvent 3. Only board of director can convene Extraordinary General Meeting"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 2&#8243; option2=&#8221;2 and 3&#8243; option3=&#8221;1 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. 1 and 3<\/strong><\/p>\n<ul>\n<li>A company can become a member of another company. This is known as a subsidiary company. A subsidiary company is a company that is controlled by another company, known as the parent company. The parent company can control the subsidiary company by owning more than 50% of its shares.<\/li>\n<li>Member&#8217;s voluntary winding up takes place when the company is solvent. This means that the company has enough assets to pay off its debts. In a member&#8217;s voluntary winding up, the directors of the company decide to wind up the company. They appoint a liquidator to sell the company&#8217;s assets and pay off its debts.<\/li>\n<li>Only the board of directors can convene an extraordinary general meeting. An extraordinary general meeting is a meeting of the shareholders of a company that is called to discuss important matters. The board of directors can call an extraordinary general meeting at any time. However, if 10% of the shareholders of the company request an extraordinary general meeting, the board of directors must call it within 21 days.<\/li>\n<\/ul>\n<p>The following are the incorrect options:<\/p>\n<ul>\n<li>Option A is incorrect because it includes statement 2, which is false. Member&#8217;s voluntary winding up takes place when the company is solvent, not insolvent.<\/li>\n<li>Option B is incorrect because it includes statement 3, which is false. Only the board of directors can convene an extraordinary general meeting.<\/li>\n<li>Option D is incorrect because it includes all three statements, which are not all true.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;1 and 2&#8243; option2=&#8221;2 and 3&#8243; option3=&#8221;1 and 3&#8243; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[704],"tags":[],"class_list":["post-34629","post","type-post","status-publish","format-standard","hentry","category-legal-aspects-of-business","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statements are true in context of a company under Company Act, 2013? 1. 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