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CS Professional · Insolvency and Bankruptcy - Law and Practice · Voluntary Liquidation of Companies

Sagar Foods Ltd's directors made the declaration for voluntary liquidation. Which set of documents must accompany that declaration under Section 59(3)?

The declaration must be accompanied by audited financial statements and business records for the previous two years or since incorporation, whichever is later, and a registered valuer's report on the assets, if any prepared. Section 59(3)(b) prescribes this; five-year accounts or Registrar NOCs are not required.

  1. AAudited financial statements and record of business operations for the previous two years or since incorporation if later, and a valuation report of assets by a registered valuer, if any preparedCorrect
  2. BAudited financial statements for the previous five years and a creditors' consent letter
  3. COnly the affidavit of the directors, with the valuation report filed after the members' resolution
  4. DAudited financial statements for the previous year and a no-objection certificate from the Registrar

Explanation

Section 59(3)(b) requires audited financial statements and record of business operations for the previous two years or since incorporation, whichever is later, plus a valuation report of assets by a registered valuer, if any prepared. Five years, creditor consent letters or Registrar NOCs are not prescribed there.

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