Meeting of creditors required alongside company meeting; creditors may order voluntary winding up or refer for insolvency when debts are doubtful. A company proposing voluntary winding up must convene a meeting of creditors alongside the members' meeting, notify creditors by registered post, and the ... Summary
Meeting of creditors required alongside company meeting; creditors may order voluntary winding up or refer for insolvency when debts are doubtful.
A company proposing voluntary winding up must convene a meeting of creditors alongside the members' meeting, notify creditors by registered post, and the Board must present a full statement of affairs, list of creditors, the declaration and estimated claims and appoint a director to preside. Creditors by qualified majority may decide voluntary winding up or refer the company for formal insolvency processes if it cannot meet debts from winding-up proceeds. The company must notify the Registrar of creditors' resolutions, and failure to comply attracts prescribed penalties on the company and penal consequences for defaulting directors.
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