Q.Write about the circumstances for voluntary liquidation.

Voluntary liquidation arises when a fixed duration/event ends, or when the members decide to wind up a solvent company able to pay its debts, by passing the required resolution and a declaration of solvency.

The circumstances for voluntary liquidation (voluntary winding up) of a company are:

• Expiry of the fixed period — where the articles fix a duration for the company and that period has expired, and the company in general meeting passes a resolution to wind up.
• Occurrence of a specified event — where the articles provide that the company is to be dissolved on the happening of a particular event, that event occurs, and the members resolve to wind up.
• Decision of the members — where the members, on their own, decide that the company should be wound up (for example, the objects are fulfilled or it is no longer viable to continue) and pass the necessary resolution. …