Which of the following are legitimate reasons for a company to be liquidated?
$\quad$I.$\quad$Because the company is expected to fail
$\quad$II.$\quad$Because it is believed that the directors are abusing their power
$\quad$III.$\quad$Because the shareholders want their capital returned

Question

Quizplus · Accepted Answer

All three reasons are legitimate grounds for a company to be liquidated. A company may be liquidated if it is expected to fail to protect creditors and shareholders. If directors are abusing their power, liquidation can protect the company's assets and stakeholders. Lastly, if shareholders wish to have their capital returned and the company is solvent, liquidation can distribute the assets back to them.

Which of the Following Are Legitimate Reasons for a Company \quad

Which of the Following Are Legitimate Reasons for a Company $\quad$