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If after one year, the liquidator is
of the opinion that the company will be unable to pay its
debts in full (together with interest at the official rate)
as stated in the directors' declaration of solvency, Section
95 then comes into force.
The liquidator must then:
1. Summon a meeting of creditors for
a day not later than the 28the day after the day on which
he formed that opinion.
2. Send notices of the creditors' meeting
to the creditors by post not less than 7 days before the day
on which that meeting is to be held.
3. Advertise that creditors meeting once
in the Gazette and once a least in 2 newspapers circulating
in the relevant locality.
4. Provide creditors, free of charge,
with such information concerning the affairs of the company
as they require during the period before the day of the creditors
meeting.
5. Produce a statement in the prescribed
form as to the affairs of the company.
6. Provide that statement before the
creditors meeting, and
7. Attend and preside at that meeting.
The members voluntary liquidation then
converts to a creditors voluntary liquidation. As from the
day of the creditors meeting held as above, the Insolvency
Act has effect as if:-
1. the directors' declaration of insolvency
had not been made
2. the creditors' meeting and the company
meeting at which it was resolved that the company be wound
up voluntary were the meetings mentioned in Section 98 - Meeting
of creditors.
If you would like to read further about
Section 98 Meeting of Creditors, click
here.
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