LIQUIDATION

Eunice, I’m going to wriggle here! When a creditor has been asking for payment and none is forthcoming, that creditor may, with or without other creditors, ask that the directors commence the procedure to put the company into liquidation (I don’t like this!)

So that would be my answer to the second question above

Following that request from the creditors, it is then incumbent upon the directors to commence that procedure (if they are satisfied that the company cannot continue by reason of its debts) and it’s the directors that will then put in motion the steps necessary for preparing a statement of affairs and the calling of the meeting of members (first) followed by the meeting of creditors

And that should answer your first question above

But that second question is awful! Are you sure that you haven’t mistyped it?

OK?

Oh Eunice! I am so pleased that you mistyped the question 🙂

I presume that I have now satisfactorily answered both parts of your post.

If not, post again

OK, I believe that the key to this question is the word ‘applies’ as in ‘applies for a company to be liquidated in a creditors’ voluntary liquidation?’

The creditors will make the noise, the directors will respond. But it’s the members that pass the resolution to put the company into liquidation. The first inkling that the Registrar of Companies has that the company is in trouble is when a copy of that resolution is delivered to the Registrar.

So, in that respect, yes it’s the members that apply to the Registrar to record the resolution putting the company into liquidation

Better?