A legal document used in a member's voluntary winding- up to declare that the company is able to pay its debts in full is referred to as a/an:
A)constitution
B)declaration of solvency
C)declaration of liquidation
D)none of the above

Question

Quizplus · Accepted Answer

A declaration of solvency is a legal document that is filled out by the directors of a company prior to a members' voluntary winding-up. This document declares that the company is able to pay its debts in full and that it will be able to do so within a specified timeframe. This document is required in order to prove that the company is solvent and would not require the services of a liquidator to oversee the winding-up process.

A Legal Document Used in a Member's Voluntary Winding- Up