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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Kaveri Engineering Ltd's directors filed their Section 59 declaration on 1 March. The company owes no debt to any person. By which date must the members pass the special resolution to liquidate voluntarily and appoint an insolvency professional as liquidator?

The special resolution must be passed within four weeks of the directors' declaration, so by 29 March. The seven-day limit applies to creditor approval and notification, not to the members' resolution, and no thirty-day or ninety-day period applies here.

  1. AWithin seven days, i.e. by 8 March
  2. BWithin four weeks, i.e. by 29 MarchCorrect
  3. CWithin thirty days, i.e. by 31 March
  4. DWithin ninety days, i.e. by 30 May

Explanation

Section 59(3)(c) requires the special resolution of members within four weeks of the declaration. Four weeks from 1 March is 29 March (28 days). The seven-day period relates to creditor approval and notification, not to this resolution.

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