Section 59 of IBC : Section 59: Voluntary Liquidation Of Corporate Persons

Explanation using Example

Imagine a scenario where ABC Pvt. Ltd., a company engaged in the manufacturing of electronic goods, has been experiencing a decline in demand for its products. The directors of the company conduct a thorough review of the business and come to the conclusion that the company's prospects are unlikely to improve. After careful consideration, they decide it would be best to close the business through a voluntary liquidation process as the company is solvent and can pay off its debts.

The directors prepare a declaration, verified by an affidavit, stating that they have fully inquired into the company's affairs and believe the company can pay its debts in full from the sale of its assets. They also confirm that the liquidation is not intended to defraud anyone. Alongside the declaration, they provide audited financial statements for the past two years and a regist...

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