Q.Give the meaning of voluntary liquidation by members.

The declaration of solvency in a members' voluntary winding-up is prepared and made by the directors — the correct option is (A).

Before a solvent company goes into members' voluntary liquidation, the directors (a majority of them) must make and verify a declaration of solvency — a statement that they have made a full enquiry into the company's affairs and are of the opinion that it will be able to pay its debts in full within the specif …

Voluntary liquidation is divided into two parts — members' and creditors' voluntary winding up — so the answer is (A) 2.

When a company decides on its own to wind up, the process (voluntary winding up) is classified into:

1. Members' voluntary winding up — when the company is solvent and a declaration of solvency is made; members control the process. …