A Statutory Declaration of Solvency is a key document in the liquidation process for a Members’ Voluntary Liquidation . An MVL is a solvent liquidation procedure where, from the outset, it is envisaged that all creditors will be paid in full. Prior to the passing of the Special Resolution by the Shareholders to place the company into liquidation, both directors or a majority of directors must declare before a solicitor the Declaration stating that the directors have made a full enquiry into the affairs of the company and are satisfied that it will be able to settle all its debts within 12 months of the commencement of the MVL. Under the Insolvency Act 1986 it is a criminal offence for a company director to make a statutory declaration of a company's solvency without reasonable grounds. Where one or more of the directors is based overseas, the Declaration usually takes place…
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