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Deadlock in the management:
The company existed only to "work a particular patent" and as it could not do so it should be wound up.
But if there are two or more alternative objects (in the proper sense objects rather than ancilliary powers) inability to achieve one of them does not justify winding up: (Re Kitson & Co. (1946) two businesses - one was sold - petition dismissed):
(a) There is a complete deadlock in the management of the company's affairs.
Cases:
(i) RE YENIDJE TOBACCO CO. (1946)
Two sole traders merged their businesses in a company of which they were the only directors and shareholders. They quarrelled bitterly and one sued the other for fraud. Meanwhile they refused to speak to each other and conducted board meetings by passing notes through the hands of the secretary. The defendant in the fraud action petitioned for compulsory winding up, which was opposed by the other member.
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