What is the voluntary liquidation process as per the IBC? A. Involuntary winding-up initiated by creditors B. Initiated by the corporate debtor itself C. Resolution through a court-supervised process D. Conversion into a public limited company
Question
What is the voluntary liquidation process as per the IBC? A. Involuntary winding-up initiated by creditors B. Initiated by the corporate debtor itself C. Resolution through a court-supervised process D. Conversion into a public limited company
Solution
The voluntary liquidation process as per the Insolvency and Bankruptcy Code (IBC) is initiated by the corporate debtor itself. Here are the steps involved:
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Decision Making: The first step in the voluntary liquidation process is the decision of the corporate debtor to liquidate its assets. This decision is usually taken when the company is unable to pay its debts. The decision must be approved by at least two-thirds of the total number of partners or directors of the company.
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Appointment of Liquidator: Once the decision is made, the company appoints a liquidator
Similar Questions
n this orderly liquidation, the process is done immediately, especially if creditors have sued or when a bankruptcy is filed.Select one:TrueFalse
What is the Corporate Insolvency Resolution Process (CIRP) under the IBC? A. Liquidation of corporate assets B. A mechanism for resolving insolvency of corporate debtors C. Voluntary winding-up of companies D. Corporate restructuring
This type of liquidation occurs when the assets are sold as quickly as possible, much like an auction.a.Creditor`s liquidationb.Forced liquidationc.Orderly liquidationd.Solvent liquidation
This type of liquidation happens when a company director realizes that they won`t be able to pay its debts on time or when the liabilities exceed the asset value.a.Insolvent liquidationb.Member`s voluntary liquidationc.Solvent liquidationd.Creditor`s liquidation
The following are typical types of liquidation, except;a.Debtor`s Voluntary Liquidationb.Members` voluntary liquidationc.Orderly liquidationd.Compulsory liquidation
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