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Creditors’ Voluntary Winding Up
Creditors’ Voluntary Winding Up
Where the company is not solvent or where the declaration of solvency of the company is not made and delivered to the Registrar in a voluntary winding up, it amounts to creditor’s voluntary winding up.
In this case all the provisions of a member’s voluntary winding up apply except that instead of the members, it is the creditors who appoint the liquidator, approve the accounts and regulate the winding up proceedings. The creditors may appoint a Committee of Inspection consisting of not more than 5 creditors in order to regulate and supervise the winding up proceedings.
You will find that Court has some specific powers in case of Voluntary Winding Up.
When a company has by special or ordinary resolution resolved wind up voluntarily, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision the Court and with such liberty for creditors, contributories or others to apply to the Court and generally on such terms and conditions, as the Court thinks just.
Where the company is not solvent or where the declaration of solvency of the company is not made and delivered to the Registrar in a voluntary winding up, it amounts to creditor’s voluntary winding up.
In this case all the provisions of a member’s voluntary winding up apply except that instead of the members, it is the creditors who appoint the liquidator, approve the accounts and regulate the winding up proceedings. The creditors may appoint a Committee of Inspection consisting of not more than 5 creditors in order to regulate and supervise the winding up proceedings.
You will find that Court has some specific powers in case of Voluntary Winding Up.
When a company has by special or ordinary resolution resolved wind up voluntarily, the Court may make an order that the voluntary winding up shall continue, but subject to such supervision the Court and with such liberty for creditors, contributories or others to apply to the Court and generally on such terms and conditions, as the Court thinks just.
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