wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

WINDING UP

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following cannot initiate a proceeding for compulsory winding up of a company?

a)

Minister

b)

Creditor

c)

Company

d)

Local bank

2.

A creditor’s voluntary winding up starts with the creditor's petition to the court.

a)

TRUE

b)

FALSE

3.

Which of the following statements is not the ground of a compulsory winding up?

a)

The company is formed for unlawful purpose.

b)

No business within a year from its incorporation.

c)

The company has no member.

d)

The directors fail to lodge a declaration of solvency to the Registrar of companies.

4.

The above statement refers to the process of _______.

a)

Winding up

b)

Formation of a new company

c)

Drafting a pre-incorporation contract

d)

Drafting the Memorandum and Articles of Association

5.

In relation to the above situation Uptown Bus Services Sdn Bhd may be dissolved by ______.

a)

Fraud

b)

Deadlock

c)

Failure to substratum

d)

no members in the company

6.

Which one of the following is the best ground to dissolve Syarikat Chipsmore Sdn Bhd?

a)

Just and equitable

b)

The company is used for unlawful purposes

c)

The Company is unable to pay its debts

d)

The license of the company under Islamic Banking Act 1983 has been revoked.

7.

Which of the followings are the reasons to winding up a company?


i. A company become insolvent

ii. It was ordered to wind up by the court

iii. The expiration of the company's life as per its constitution

iv. The death of one of its Board of Directors.

a)

i, ii, iii

b)

ii, iii, iv

c)

i, ii, iv

d)

i, iii, iv

8.

By the provision of section 432 Companies Act 2016, the winding up of the company can either be .....

a)

Voluntary winding up

b)

Special winding up

c)

Compulsory winding up

d)

Ordinary winding up

9.

The Voluntary winding up can either be .......

a)

creditors' voluntary winding up

b)

shareholders' voluntary winding up

c)

winding up by court order

d)

members' voluntary winding up

10.

The declaration of solvency can best be defined as ......

a)

acknowledgement that the company is solvent

b)

acknowledgement that the company is insolvent

c)

acknowledgement that the company's affair is closed

d)

acknowledgement that the company is exist.

11.

a. A company lodge a declaration of solvency to Registrar.

b. This declaration is made at the director's meeting.

c. To show that the company able to pay the debts in full.


The above statements can best be referred to the .....

a)

creditors' voluntary winding up

b)

members' voluntary winding up

c)

Compulsory winding up

d)

Voluntary winding up

12.

The following statements are the effects of winding up except ........

a)

the creditors cannot enforce any judgment agaisnt the company

b)

the company is prevented from carrying on a business

c)

the director will lose their power to manage the business

d)

the company is allowed to issue shares to the public

13.

Which of the following person cannot file a petition to the court for winding up order?

a)

The promoter

b)

The creditor

c)

The company

d)

the liquidator

14.

Which of the following is not a ground to wind up a company?

a)

The death of its directors

b)

The special resolution passed by the members to wind up the company

c)

The company is unable to pay its debts

d)

No members in the company

15.

Dato' Jed, a director in Global Maju S/B had acted in his own interest rather than the interest of the company which it appear unjust or unfair to the company.

According to the above situation, Global Maju S/B may be dissolved by way of ......

a)

Voluntary winding up

b)

Compulsory winding up

16.

The company does not commence business within a year from its incorporation or suspends its business for a whole year.


The above ground of winding up refers to .....

a)

voluntary winding up

b)

compulsory winding up

c)

members' voluntary winding up

d)

creditors' voluntary winding up

17.

Members' voluntary winding up may be converted to creditors' voluntary winding up in the following situations except when ...........

a)

the company is insolvent

b)

The directors lodged the declaration of solvency to the Registrar

c)

a liquidator forms an opinion that the company is unable to pay its debts

18.

- The liability of Triple Z S/B exceeds its assets.

- The company is unable to pay its RM5, 000, 000 debts to the creditors.

- The company's cheques have not been honoured.


Based on the above circumstances, what are the most relevant action can be taken by the creditors against Triple Z S/B?

a)

Application for compulsory winding up.

b)

Application for an injunction

c)

Application for specific performance

d)

Application for take over the company

19.

Under the rules of a High Court, an application for compulsory winding up must be filed with Affidavits in support.

a)

TRUE

b)

FALSE

20.

Winding up is also known as liquidation.

a)

TRUE

b)

FALSE