Declaration of solvency: failure to file prevents members' voluntary winding up and may render the resolution void. Failure to file a declaration of solvency prevents a members' voluntary winding up; any liquidator appointment or actions under that regime are void. The company must follow the alternative winding up procedure applicable when no declaration is filed, and noncompliance renders proceedings void ab initio and may attract statutory penalties. If no declaration is filed and no creditors' meeting is convened despite alleged absence of creditors, the resolution is void and a fresh resolution compliant with the declaration requirement is necessary before treating the company as in liquidation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Declaration of solvency: failure to file prevents members' voluntary winding up and may render the resolution void.
Failure to file a declaration of solvency prevents a members' voluntary winding up; any liquidator appointment or actions under that regime are void. The company must follow the alternative winding up procedure applicable when no declaration is filed, and noncompliance renders proceedings void ab initio and may attract statutory penalties. If no declaration is filed and no creditors' meeting is convened despite alleged absence of creditors, the resolution is void and a fresh resolution compliant with the declaration requirement is necessary before treating the company as in liquidation.
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