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CS Professional · Corporate Restructuring, Valuation and Insolvency · Voluntary Liquidation

Arjun Foods Pvt Ltd, owing debts, passed a special resolution for voluntary liquidation on 5 April. Creditors representing two-thirds in value of the debt approved it on 9 April. From which date are the voluntary liquidation proceedings deemed to have commenced?

The proceedings are deemed to have commenced on 5 April, the date the members passed the resolution, provided the creditors approve it. Section 59(5) links commencement to the resolution date, not to the creditor approval, the declaration or the notification.

  1. A9 April, the date of creditor approval
  2. B5 April, the date of passing the resolutionCorrect
  3. CThe date of the directors' declaration
  4. DThe date on which the Registrar is notified

Explanation

Section 59(5) says, subject to creditor approval, the proceedings are deemed to have commenced from the date of passing the members' resolution under section 59(3)(c). So the date is 5 April, not the date of creditor approval.

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