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

The majority of directors of Narmada Foods Ltd make a declaration on 1 March for voluntary liquidation. By which date must the members pass the special resolution to liquidate and appoint an insolvency professional as liquidator?

The members must pass the special resolution requiring voluntary liquidation and appointing the insolvency professional as liquidator within four weeks of the directors' declaration. Seven days applies to later steps such as creditor approval and notifying the Registrar and the Board.

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

Explanation

Section 59(3)(c) requires the special resolution within four weeks of the declaration, so by 29 March. Seven days applies to creditor approval and notice, not this step.

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