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Companies Winding Up - Coggle Diagram

- - - - Notes
        
        S.433 CA 2016 - the majority directors must make a statutory declaration of solvency before the members could pass a resolution to wind up the ocmpany
        
        making the decclaration without reasonable grounds is a criminal offence.
        
        Director shall declare that they have inquired into the company's affairs and formed the opinion that the the company able to pay all debts in full within 12 months.
        
        a liquidation process by solvent companies
        
        SSM Management Sdn Bhd v Aeon Big (M) Sdn Bhd - the test of insolency, is that the company must be able to pay its debts when they fall due and not at some future date. Meaning to say, the company the company must willing and able to meet the current demand of the creditor.
        
        shareholders choice - the business is no longer viable but has enough assets to clear its debts
      - Process of MVWU
        
        S.433(6) - if company no enough assets = no reasonable grounds
        
        SSM Management Sdn Bhd v Aeon Big (M) Sdn Bhd - the test of insolency, is that the company must be able to pay its debts when they fall due and not at some future date. Meaning to say, the company the company must willing and able to meet the current demand of the creditor.
        
        QB Khidmat Teguh Sdn Bhd v Pembinaan Legenda Unggul Sdn Bhd & Ano - if a director unable to sign a declaration of solvency the company msut opt for a creditors voluntary winding up.
        
        S.114 CA 2016 - liability of directors for the solvency statement
        
        S.439(2) (a) & (b)
      - Liquidator in MVWU
        
        S.2 "approved liquidator"
        
        S.445 - liquidator be appoint in the GM fo rthe purpose of administrating the affairs.
        
        S.446 - liquidator may replaced in the general meeting due to death, resignation removal or any otehr reasons
      - Conversion to Creditors Voluntary Winding Up
        
        When there is no declaration of solvency
        
        When after the appointment of liquidator of members