voluntary winding up

Definition:

a winding up of a registered company initiated by a resolution of the members of the company. If, within the five weeks preceding the adoption of the resolution to wind up, a majority of the directors of the company make, at a board meeting, a statutory declaration of the company’s solvency (see the entry for ‘declaration of solvency’) then the winding up is a ‘members’ voluntary winding up'; otherwise it is a ‘creditors’ voluntary winding up’. The directors’ declaration may be made on the same day as the members’ meeting provided it is made before the meeting. Also called ‘voluntary liquidation’.



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