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Insolvency

Creditors’ voluntary winding up

Winding up commences from the passing of the appropriate resolution.

There is no declaration of solvency as the company is insolvent. A
meeting of creditors must be held within 14 days of the resolution to
liquidate. The directors must submit a statement of the company’s
affairs.

Both the members and the creditors have the right to appoint a named
insolvency practitioner as liquidator. In the event of a dispute, the

creditors’ nominee prevails. The members and creditors may appoint up
to five persons to serve on a liquidation committee.

The liquidator is responsible for realising the assets and distributing the
proceeds.

The liquidator presents his report to the final meetings of members and
creditors.

The liquidator informs the Registrar of the final meeting(s) and
submits a copy of his report.

The Registrar registers the report and the company is dissolved three
months later.

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