Voluntary Liquidation of corporate persons.

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....y liquidation proceedings of a corporate person registered as a company shall meet the following conditions, namely:- (a) a declaration from majority of the directors of the company verified by an affidavit stating that- (i) they have made a full inquiry into the affairs of the company and they have formed an opinion that either the company has no debt or that it will be able to pay its debts in full from the proceeds of assets to be sold in the voluntary liquidation; and (ii) the company is not being liquidated to defraud any person; (b) the declaration under sub-clause (a) shall be accompanied with the following documents, namely:- (i) audited financial statements and record of business operati....

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....ceedings in respect of a company shall be deemed to have commenced from the date of passing of the resolution under sub-clause (c) of sub-section (3). ^3[(5A) Any time after the commencement of a voluntary liquidation proceeding under sub-section (5) but before an application under sub-section (7) is filed, the voluntary liquidation proceeding shall be terminated if the following conditions are satisfied, namely:-- (a) the members of the company have passed a special resolution for terminating the voluntary liquidation proceeding; (b) where the company owes debt to any person on the date of the resolution under clause (a), creditors representing two-thirds in value of such debt have approved the resolution passed under ....