Page 276 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 193 4
1.3 Members’ voluntary liquidation
This is used when a company is solvent (i.e. has assets greater than its liabilities).
Once a resolution has been passed the directors must make a declaration of
solvency stating that they are of the opinion that the company will be able to pay its
debts within twelve months.
The company will then appoint a named insolvency practitioner to act as the
liquidator.
The liquidator will realise the company's assets and distribute the proceeds
accordingly.
Once the liquidation process is complete, the liquidator presents a report at the final
meeting of the members which is then submitted to the registrar of companies.
The company will be dissolved three months later.
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