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

Meridian Textiles Ltd, a company with no default, plans voluntary liquidation under the IBC. Its directors made the declaration on 1 March. By what time must the members pass the special resolution in a general meeting requiring voluntary liquidation and appointing an insolvency professional as liquidator?

The special resolution must be passed within four weeks of the directors' declaration. The seven-day period under the Code applies to creditor approval and to notifying the Registrar and the Board, so it is not the window for the members' resolution.

  1. AWithin four weeks of the declarationCorrect
  2. BWithin seven days of the declaration
  3. CWithin thirty days of the declaration
  4. DWithin fourteen days of the declaration

Explanation

Section 59(3)(c) requires the members' special resolution within four weeks of the directors' declaration. Seven days is the period for creditor approval and for notifying the Registrar and the Board, not for the members' resolution.

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