ACCA LW · Chapter 11 · Question 1 of 10
Which of the following types of winding up requires the directors to make a statutory declaration of solvency?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A members' voluntary winding up
Explanation
A members' voluntary liquidation is available only where the directors make a declaration of solvency stating that the company will be able to pay its debts in full within a period not exceeding twelve months. If no such declaration is made, a voluntary winding up proceeds as a creditors' voluntary liquidation. Compulsory liquidation is ordered by the court on a petition.
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