Members' Voluntary Winding Up occurs when the company is solvent and can pay its debts in full within 12 months. The process involves:
Declaration of Solvency: Directors must make a declaration of solvency.
Extraordinary General Meeting (EGM): An EGM is held where shareholders pass a resolution for winding up and appoint a
liquidator to manage the process.
Liquidator's Duties: The liquidator disposes of the company’s assets, pays off debts, and distributes any remaining assets to shareholders.
Final Meeting and Dissolution: After settling the affairs, the liquidator convenes a final meeting and submits an account of the winding up to ACRA, leading to the company's dissolution.
Creditors’ Voluntary Winding Up: Initiated if the company is insolvent and cannot pay its debts.
EGM and Creditors’ Meeting: The company holds an EGM to pass a resolution for winding up and a meeting with creditors is convened to appoint a liquidator.
Liquidation Process: Similar to a members' voluntary winding up, but with a focus on paying off creditors.
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