Voluntary winding up

Both types of voluntary winding up are initiated by a special resolution of the members. If the directors have previously made a declaration of solvency, it will be a members’ voluntary winding up; if not, a creditors’ one.

In a creditors’ voluntary, the liquidator must convene a meeting of creditors within 11 days and advertise it. The liquidator must table a declaration of relevant relationships at the meeting, which can change the liquidator and appoint a committee of inspection. If the liquidator in a members’ voluntary forms the view that the company will not be able to pay all its debts in full in the period stated in the declaration of solvency, he or she must convene a meeting of creditors and lay before it a statement of assets and liabilities. The meeting may change the liquidator but in any event, the winding up then proceeds as a creditors’ voluntary.

See Voluntary winding up.