A members’ voluntary liquidation has the following features:
·The members have decided to wind-up a company that is solvent
·A special resolution is passed to commence the winding up, this must be delivered to the registrar within 15 days
·The directors must produce a sworn statement of solvency stating that the company is able to meet its debts as they fall due within the next 12 months.
·Within three months of commencement the liquidator must call a general meeting to lay an account of his transactions
·The liquidator will call a final meeting to lay final accounts when the liquidation is complete
At any point the company is deemed insolvent the process can be converted into a creditors’ voluntary liquidation. It is a criminal offence to make a statement of solvency for a company that is insolvent. A creditors’ voluntary liquidation has the following features that distinguish it from a member’s voluntary liquidation:
·The company is found to be insolvent
·The members must pass a special resolution
·Notice must be given of a meeting of the creditors
·A members meeting is held to appoint a liquidator
·A creditors meeting is usually held on the same day where the creditors may appoint their own choice of liquidator |
