A declaration of solvency is required to be signed by the directors of the company in order for:

Question

Quizplus · Accepted Answer

A declaration of solvency is a legal statement made by the directors of a company when they wish to wind up the company in a members' voluntary liquidation. By making this statement, the directors confirm that they have conducted a full investigation of the company's affairs and are satisfied that the company is able to pay its debts in full within a period of 12 months or less. This statement is required by law, and failure to comply can result in serious penalties for the directors. Therefore, the correct choice is option D, which states that the declaration of solvency is required for the liquidation to proceed as a members' voluntary winding up.

A Declaration of Solvency Is Required to Be Signed by the Directors