302. Declaration of solvency

a liquidator is appointed under paragraph (a) or (b) of subsection (2) of section 298; and

before that appointment, a written declaration that meets the conditions in subsection (2), made by –

all of the directors of the company; or

in the case of a company having more than two directors, a majority of the directors of the company, is filed with the Registrar and Authority.

states that –

the directors making the declaration have made a full inquiry into the affairs of the company; and

having done so, those directors have formed the opinion that the company will be able to pay its debts in full within a period not exceeding twelve months after commencement of a liquidation of the company;

includes a full statement about the affairs, business, property and financial circumstances of the company;

showing as at the latest practicable date before the making of the declaration –

the particulars of its property, including any inventory of stock and the total amount expected to be realised therefrom;

the debts and other liabilities of the company;

the name and address of each of its creditors;

the encumbrance or encumbrances (if any)

the date on which each encumbrance was created; and

the estimated costs, charges and expenses of the liquidation and the estimated remuneration of the liquidator;

supported by affidavit by one or more of the persons who are directors of the company, as at the date of the statement;

is made at a meeting of the directors of the company; and

is made within the twenty working days immediately preceding the date of appointment of the liquidator.

this section ceases to apply to the company, but without affecting or limiting subsection (3); and

the liquidator shall as soon as practicable give written notice to the Registrar and Authority that this section no longer applies to the company.