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Declaration of solvency

3.2 Where it is proposed to wind up a Company using an MVL, the Directors (or, in the case of a Company having more than two Directors, the majority of them), must make a declaration of solvency.
3.3 The declaration of solvency must state that the directors have made a full inquiry into the Company’s affairs and that, having done so, they have formed the opinion that the Company will be able to pay its debts in full, together with interest, within 12 months from the start of the winding-up process.
3.4 The directors must make a declaration of solvency within the five weeks immediately before a resolution to wind up the Company is passed.

 

Making a declaration of solvency

In addition to writing a statement that the Directors have assessed and formed the opinion that the Company can pay its debts in full, with interest, you should include:
a) the name and address of the company;
b) the names and addresses of the company’s directors; and
c) how long it will take the company to pay its debts (which must be no longer than 12 months from the start of liquidation).