Compulsory winding up
Member's voluntary winding up
Creditors voluntary winding up
All the above
Answer is Right!
Answer is Wrong!
The correct answer is: C. Creditors voluntary winding up
A declaration of solvency is a statement made by the directors of a company that the company is solvent and that it will be able to pay its debts in full within 12 months of the winding up. This declaration is required in order to commence a creditors voluntary winding up.
A compulsory winding up is a winding up that is ordered by the court. In this case, there is no need for a declaration of solvency.
A members voluntary winding up is a winding up that is initiated by the members of the company.
In this case, a declaration of solvency is required unless the company is unable to pay its debts.Therefore, the only option in which a declaration of solvency is necessary is creditors voluntary winding up.