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

Meenakshi Foods Pvt Ltd passes a special resolution for voluntary liquidation on 1 August and has creditors. Creditors holding two-thirds in value approve it on 5 August. By when must the company notify the Registrar of Companies and the Insolvency and Bankruptcy Board of India?

Notification is due by 12 August. Where creditor approval is required, the seven-day period for informing the Registrar and the Board runs from the creditors' approval on 5 August, not from the earlier members' resolution.

  1. ABy 8 August, seven days from the resolution
  2. BBy 12 August, seven days from creditor approvalCorrect
  3. CBy 29 August, four weeks from the resolution
  4. DBy 19 August, fourteen days from creditor approval

Explanation

Section 59(4) requires notice within seven days of the resolution or the subsequent creditor approval, as the case may be. Since creditors had to approve, the period runs from 5 August, ending 12 August. Counting from 1 August is wrong here.

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