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Hi sir can you please explain the following.
Jinx Ltd formed by two brothers the company’s only shareholders and directors . They have fallen out and would like the company liquidated.
Which of the following instigates a creditors voluntary liquidation?
The directors
The members
The creditors
The official receiverI chose the members but the answer in the book says the directors.
For the members to know about the meeting necessary for them to vote and pass a special resolution, that meeting needs to be convinced and the wording of the special resolution needs to be included verbatim within the notice of the meeting
In order for a meeting to be convinced, the directors must pass a board resolution agreeing / deciding to call that meeting with that proposed resolution on the agenda
So, technically, the decision to commence the process leading to a creditors’ voluntary liquidation lies with the directors
OK?
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