The following are grounds that may lead to the winding up of a company under the Bodies Corporate (Official Liquidations) Act, 1963, Act 180:

• Failure to Commence Business: Within one year from the date of incorporation, the company fails to carry on all of its authorized business.
• Suspension of Business: The company suspends any of its authorized business for a whole year.
• Lack of Members: The company has no members.
• Unlawful Business: The business or objects of the company are unlawful.
• Illegal Operation: The company is being operated for an illegal purpose. When a company carries on illegal activities, it is sometimes said to be engaged in fraudulent trading. A company formed or operating to defraud others may be wound up.
• Unauthorized Business: The business being carried on by the company is not authorized by its Regulations.
• Inability to Pay Debts: The company is unable to pay its debts. However, if the debt is genuinely disputed, the company may not be wound up.
• Just and Equitable Grounds: Finally, the court may issue a winding-up order if it is of the opinion that it is just and equitable that the company be wound up.

(Any 5 points @ 1 mark each = 5 marks)