Creditors Voluntary Winding Up Creditor's voluntary winding up: under which no declaration of the firm's solvency is made but

the firm must hold a meeting of creditors and submit to them the statement of its assets and liabilities as on the latest practicable date. The right to appoint liquidator(s) accrues to the creditors. In both types, the powers of directors cease upon the appointment of the liquidator(s). Also called voluntary liquidation. Procedures for Creditors Voluntary Winding Up Below is the procedure for creditors voluntary winding up: A board meeting need to be convened by the respective companys directors to decide on the date of the EGM and creditors meeting. These meeting must be held within one month from the date of statutory declaration (Form 65A). The directors make a statutory declaration of Form 65 (statutory declaration of inability of company to continue business and that meeting of the company and its creditors have been summoned) and lodged with the CCM. The companys director shall appoint and approve liquidator to be the provisional liquidator. At the EGM, A special resolution will be passed to wind up your company by the way of creditors voluntary winding up because of your companys inability to continue business by its own liabilities. Then it shall nominate a liquidator for the winding up. Consequenlty, file Form 11 with the CCM within 7 days after passing of the resolution. Thereafter, give notice of the resolution in local newspaper within 10 days after the passing of the resolution. At the creditors meeting, the director appointed by the board to attend the meeting shall preside and disclose to the meeting the companys affairs and the circumstances leading up to the proposed winding up. Next, a full statement of the companys affair together with a list of the creditors and the estimated amount of their claims must be laid before the meeting of creditors Thereafter, nominate a liquidator. If the creditors and members nominated different person to act as liquidator for the winding up, then the liquidator appointed by the creditors shall be the liquidator. Lastly, the creditor shall appoint a committee inspection consisting not more than five persons. The function of a committee of inspections is to supervise the act of the liquidator.

The final procedure shall be liquidator must, within 14 days of his appointment, lodge with the CCM a Notice of Appointment and Situation of Office of Liquidator in a Creditors Voluntary Winding Up (Form72).