Regulation 3 - Initiation of Liquidation

Commencement of voluntary liquidation: declaration, supporting valuation and creditor approval trigger liquidation proceedings.

Commencement of liquidation for a non company corporate person requires a sworn declaration by governing persons that, after inquiry, the entity has no debt or can pay debts in full from liquidation proceeds, is not being liquidated to defraud any person, and has made provision for obligations from pending matters. The declaration must be accompanied by audited financial statements, a registered valuer's valuation in the Board's format, and disclosure of pending proceedings and litigations; it must list each debt and provide for record preservation. A partners' or contributories' resolution appointing an insolvency professional, and required creditor approval where debts exist, trigger commencement, with mandatory notification to the Registrar and the Board.