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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 253

253.(1) Where it is proposed to wind up a company voluntarily, the directors
of the company or, in the case of a company having more than two directors,
the majority of the directors, may, at a meeting of the directors make a
statutory declaration to the effect that they have made a full inquiry into
the affairs of the company, and that, having so done, they have formed the
opinion that the company will be able to pay its debts in full within such
period not exceeding twelve months from the commencement of the winding up as
may be specified in the declaration.

(2) A declaration made as aforesaid shall have no effect for the purposes of
this Act unless

(a)it is made within the five weeks immediately preceding the date of the
passing of the resolution for winding up the company and is delivered to
the registrar of companies for registration before that date; and

(b)it embodies a statement of the company's assets and liabilities as at the
latest practicable date before the making of the declaration.

(3) Any director of a company making a declaration under this section without
having reasonable grounds for the opinion that the company will be able to pay
its debts in full within the period specified in the declaration, shall be
liable to imprisonment for a period not exceeding six months or to a fine not
exceeding five hundred pounds or to both; and if the company is wound up in
pursuance of a resolution passed within the period of five weeks after the
making of the declaration, but its debts are not paid or provided for in full
within the period stated in the declaration, it shall be presumed until the
contrary is shown that the director did not have reasonable grounds for his
opinion.

(4) A winding up in the case of which a declaration has been made and
delivered in accordance with this section or section two hundred and two of
the Companies Act (Northern Ireland), 1932, is in this Act referred to as "a
members' voluntary winding up", and a winding up in the case of which a
declaration has not been made and delivered as aforesaid is in this Act
referred to as "a creditors' voluntary winding up".

(5) Sub-sections (1) to (3) shall not apply to a winding up commenced before
the commencement of this Act.

Provisions applicable to a members' winding up.

© 1960 Crown Copyright

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