{"id":35261,"date":"2024-04-15T09:42:38","date_gmt":"2024-04-15T09:42:38","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=35261"},"modified":"2024-04-15T09:42:38","modified_gmt":"2024-04-15T09:42:38","slug":"where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/","title":{"rendered":"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;the creditor&#8217;s voluntary winding up&#8221; option2=&#8221;the compulsory winding up by tribunal&#8221; option3=&#8221;members voluntary winding up of a company&#8221; option4=&#8221;none of these&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. the creditor&#8217;s voluntary winding up<\/strong><\/p>\n<p>A voluntary winding up is a type of liquidation that is initiated by the company&#8217;s directors. There are two types of voluntary winding up: members&#8217; voluntary winding up and creditors&#8217; voluntary winding up.<\/p>\n<p>In a members&#8217; voluntary winding up, the directors of the company must file a declaration of solvency with the court. This declaration states that the company is solvent and that it is able to pay its debts in full within a specified period of time. If the court is satisfied with the declaration, it will order the winding up of the company.<\/p>\n<p>In a creditors&#8217; voluntary winding up, the directors of the company must call a meeting of the company&#8217;s creditors. At this meeting, the creditors will appoint a liquidator to wind up the company. The liquidator will then sell the company&#8217;s assets and distribute the proceeds to the creditors.<\/p>\n<p>If the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called a creditors&#8217; voluntary winding up. This is because the creditors are now responsible for winding up the company and they will appoint a liquidator to do so.<\/p>\n<p>The other options are incorrect because they do not describe the situation where the board of directors does not file a declaration as to solvency of the company.<\/p>\n<ul>\n<li>Option B is incorrect because a compulsory winding up by tribunal is a type of liquidation that is initiated by the court.<\/li>\n<li>Option C is incorrect because a members voluntary winding up of a company is a type of voluntary winding up that is initiated by the company&#8217;s directors and where the directors file a declaration of solvency with the court.<\/li>\n<li>Option D is incorrect because it is not a valid option.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;the creditor&#8217;s voluntary winding up&#8221; option2=&#8221;the compulsory winding up by tribunal&#8221; option3=&#8221;members voluntary winding up of a company&#8221; option4=&#8221;none of these&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[704],"tags":[],"class_list":["post-35261","post","type-post","status-publish","format-standard","hentry","category-legal-aspects-of-business","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;the creditor&#8217;s voluntary winding up&#8221; option2=&#8221;the compulsory winding up by tribunal&#8221; option3=&#8221;members voluntary winding up of a company&#8221; option4=&#8221;none of these&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T09:42:38+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/","og_locale":"en_US","og_type":"article","og_title":"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:","og_description":"[amp_mcq option1=&#8221;the creditor&#8217;s voluntary winding up&#8221; option2=&#8221;the compulsory winding up by tribunal&#8221; option3=&#8221;members voluntary winding up of a company&#8221; option4=&#8221;none of these&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T09:42:38+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/","url":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/","name":"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T09:42:38+00:00","dateModified":"2024-04-15T09:42:38+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/where-the-board-of-directors-does-not-file-a-declaration-as-to-solvency-of-the-company-the-voluntary-winding-up-is-called\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Commerce","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/commerce\/"},{"@type":"ListItem","position":4,"name":"Legal aspects of business","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/commerce\/legal-aspects-of-business\/"},{"@type":"ListItem","position":5,"name":"Where the board of directors does not file a declaration as to solvency of the company, the voluntary winding up is called:"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/35261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=35261"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/35261\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=35261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=35261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=35261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}