creditors voluntary winding upif no declaration

Question

CREDITORS' VOLUNTARY WINDING UP:

If no declaration of solvency is made and delivered to the registrar, the liquidation process is a creditors' voluntary winding up even if in the end the company pays its debts in full.

To commence a creditors' voluntary winding up the directors convene a general meeting of member to pass a special resolution. They also convene a meeting of creditors, sending notices to creditors individually and advertising the meeting once in the Kenya Gazette and once at least in a newspaper circulating in Kenya: s.286(2).

The meeting of members is held first and its business is:

                                      (a)        to resolve to wind up;

                                      (b)        to appoint a liquidator; and

                                      (c)        to nominate representatives to be members of the committee of inspection.