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ABC Pvt. Ltd., is a Private Company having five members only. All the members of the company were going by car to Mumbai in relation to some business. An accident took place and all of them died. Answer with reasons, under the Companies Act, 2013 whether existence of the company has also come to the end?
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ABC Pvt. Ltd., is a Private Company having five members only. All the ...
Existence of ABC Pvt. Ltd. after the death of all members


According to the Companies Act, 2013, a company is a separate legal entity from its members. Therefore, the death of all members of ABC Pvt. Ltd. does not automatically lead to the end of the company's existence. The company will continue to exist until it is legally dissolved.


Procedure for dissolution of a company


The procedure for dissolution of a company is as follows:



  • Voluntary winding up: The members of the company may decide to voluntarily wind up the company by passing a resolution to that effect. They will then appoint a liquidator to wind up the affairs of the company.

  • Compulsory winding up: The company may be compulsorily wound up by the court on the application of various parties, including the company itself, its creditors, or the Registrar of Companies.

  • Strike off: The Registrar of Companies may strike off the name of the company from the register of companies if it has not carried on any business for two consecutive financial years and has not applied for dormant status.



Conclusion


Therefore, in the case of ABC Pvt. Ltd., since all the members have died, the legal heirs of the members or the court may initiate the process of winding up the company. Until then, the company will continue to exist as a separate legal entity.
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ABC Pvt. Ltd., is a Private Company having five members only. All the members of the company were going by car to Mumbai in relation to some business. An accident took place and all of them died. Answer with reasons, under the Companies Act, 2013 whether existence of the company has also come to the end?
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