Wonkar Club was formed as a Limited Liability Company under Section 8 of the Companies Act, 2013 with the object of promoting Gilli Danda by arranging introductory courses at district level and friendly matches. The club
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2022
Wonkar Club was formed as a Limited Liability Company under Section 8 of the Companies Act, 2013 with the object of promoting Gilli Danda by arranging introductory courses at district level and friendly matches. The club has been earning surplus. Of late, the affairs of the company are conducted fraudulently and dividend was paid to its members. A, a member decided to make a complaint with Regulatory Authority to curb the fraudulent activities by cancelling the licence given to the company. Whether the Wonkar Club can be merged with Stick Private Limited, a company engaged in the business of Networking ?
Answer & Explanation:
According to Section 8(10) of the Companies Act, 2013, a company registered under this section shall amalgamate only with another company registered under this section and having similar objects. In the instant case, Wonkar Club cannot be merged with Stick Private Limited as the objects of both the companies are different and not similar.
Topics: Company Law
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