Insolvency

Question 1

What are the two types of voluntary liquidation?

Answer 1

Members’ voluntary liquidation
Creditors’ voluntary liquidation

Question 2

In which type of liquidation is a declaration of solvency made?

Answer 2

Members’ voluntary liquidation

Question 3

Within what time frame must a company be wound up?

Answer 3

3 months

Question 4

Which type of liquidation involves a liquidation committee?

Answer 4

Creditors’ voluntary liquidation

Question 5

A creditor that is owed over what amount can petition for a compulsory liquidation?

Answer 5

£750

Question 6

Is a fixed or floating charge holder paid first during liquidation proceedings?

Answer 6

Fixed charge

Question 7

If a company is insolvent, which type of liquidation must it be?

Answer 7

Creditors’ voluntary liquidation

Question 8

In which type of liquidation do the directors make a declaration of solvency?

Answer 8

Members’ voluntary liquidation

Question 9

In which type of liquidation is an insolvency practitioner used as a liquidator?

Answer 9

Members’ voluntary liquidation

Question 10

Within what time frame must a statement of affairs be sent to creditors in a creditors’ voluntary winding up?

Answer 10

7 working days

Question 11

In a compulsory winding up, what type of resolution is passed?

Answer 11

Special resolution