Before a Company Can Be Would Up by Its Shareholders

question 10

Multiple Choice

Before a company can be would up by its shareholders, its directors must make a declaration of solvency.This is a declaration that:

• A)the shareholders believe that the company is insolvent.
• B)the directors believe that the company will be able to pay all its debts within 12 months after the commencement of the winding up.
• C)the directors believe that the company has no significant debts.
• D)the directors believe that the company should not be wound up.