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      Question

      What is the outcome for a company following its

      dissolution under section 248?
      A The company continues to operate as usual Correct Answer Incorrect Answer
      B The company is temporarily suspended from operations Correct Answer Incorrect Answer
      C The company undergoes a reconstitution process Correct Answer Incorrect Answer
      D The company is exempted from all liabilities and obligations Correct Answer Incorrect Answer
      E The Certificate of Incorporation issued to the company is deemed to be cancelled Correct Answer Incorrect Answer

      Solution

      Companies Act Section 250. Effect of company notified as dissolved: Where a company  stands dissolved under section 248, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.

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