Topics: Bankruptcy, Liquidation, Debt Pages: 3 (975 words) Published: December 19, 2014
The procedure for creditor’s voluntary winding up:
i) A board meeting convene by the company’s directors to decide on the date of the EGM and creditor’s meeting. These meeting must be held within one month from the date of statutory declaration (Form 65A) ii) The directors make a statutory declaration of Form 65 (statutory declaration of inability of company to continue business and that meetings of the company and its creditors have been summoned) and lodged with the CCM. iii) The Company’s director shall appoint and approved liquidator to be the provisional liquidator. iv) At the EGM:-

A special resolution will be passed to wind up the company by the way of creditor’s voluntary winding up because of the company’s inability to continue business by its own liabilities To nominate a liquidator for the winding up

v) File Form 11 with the CCM within 7 days after passing of the resolution vi) Give notice of the resolution in local newspaper within 10 days after the passing of the resolution vii) At the creditor’s meeting:

The director appointed by the board to attend the meeting shall preside and disclose to the meeting the company’s affairs and the circumstances leading up to the proposed winding up A full statement of the company’s affair together with a list of the creditors and the estimated amount of their claims must be laid before the meeting of creditors If the creditors and members nominated different person to act as liquidator for the winding up, then the liquidator appointed by the creditors shall be the liquidator To appoint committee inspection consisting not more than five persons. The function of a committee of inspections is to supervise the act of the liquidator. viii) The liquidator must, within 14 days of his appointment, lodge with the CCM a Notice of Appointment and Situation of Office of Liquidator in a Creditor’s Voluntary Winding Up (Form72)

The effects of a voluntary winding up of the company are:-
1. The company shall from...
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