Declaration of solvency of company by the Directors is necessary in case of:

April 15, 2024 by rawan239

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.