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This is done using form 4.70 - members' voluntary winding-up declaration of solvency.
A majority of members must make a statutory declaration of solvency in the five weeks before a resolution to wind up the company is passed.
The directors of a company, or the majority of its directors, make a Declaration of Solvency.
If the company is solvent, and the members have made a statutory declaration of solvency, the liquidation will proceed as a members' voluntary winding-up.
The company must also send a copy of the declaration of solvency (form 4.71) and the special resolution to the Registrar within 15 days of the general meeting.
To proceed with an MVL, the directors of a company or LLP must make a formal declaration of solvency and file it with Companies House.
In a members' voluntary liquidation, the directors swear a statement, known as a declaration of solvency, to say the company will be able to pay all its debts within a period not exceeding twelve months.
A majority of the LLP's designated members must make a statutory declaration of solvency in the 5 weeks before the date when the LLP determined that it would be wound up.
Further, Form 4.25 (Scot) Declaration of Solvency and Form 600 Appointment of Liquidator are not required for registration at CH, but should be registered with AIB within 14 days.
The judge found there was a bona fide dispute about whether Mr Gregory was a creditor for a sum presently due and granted the injunction, provided that in three weeks the company would make a declaration of solvency.
If the liquidator decides that the company will not be able to pay its debts in full in the period stated in the directors' statutory declaration of solvency, they must call a meeting of the creditors which must be held within 28 days.
The financial circumstances of the company will determine which it is to be; a creditors' winding up will normally occur where the directors fail to register a declaration of solvency and the majority of creditors agree to petition the court for a dissolution of the company.