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

Orion Pharma Ltd's members passed the special resolution for voluntary liquidation on 2 May. The company owes debts, and creditors representing two-thirds in value approved it on 6 May. From which date are the voluntary liquidation proceedings deemed to have commenced?

Proceedings are deemed to have commenced on 2 May, the date the members passed the resolution. Creditor approval on 6 May is a condition, but section 59(5) fixes commencement from the resolution date, not the approval date, the notification date or the dissolution order.

  1. A2 May, the date of the members' resolutionCorrect
  2. B6 May, the date of creditor approval
  3. CThe date the Registrar is notified
  4. DThe date the Adjudicating Authority orders dissolution

Explanation

Section 59(5) says that, 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 2 May, not the date of creditor approval.

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