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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 official receiver
I 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
Understood. Thank you so much for your help.