COMPANIES ACT, 1929

675

If the company resolves by special resolution that the com-

pany be wound up voluntarily:

If the company resolves by extraordinary resolution to

the effect that it cannot by reason of its liabilities continue

its business, and that it is advisable to wind up.

(2) In this Act the expression ‘‘a resolution for voluntary

winding up’’ means a resolution passed under any of the provisions
of subsection (1) of this section.

9)

226.—(1) When a company has passed a resolution for voluntary
winding up, it shall, within seven days after the passing of the
resolution, give notice of the resolution by advertisement in the
Gazette.

Notice of reso-
ution to wind up
voluntarily

(2) If default is made in complying with this section, the com-
pany and every officer of the company who is in default shall be
liable to a default fine, and for the purposes of this subsection the
liquidator of the company shall be deemed to be an officer of *t
company.

227. A voluntary winding up shall be deemed to commence at Commencement
the time of the passing of the resolution for voluntary winding up. A unr

Consequences of Voluntary Winding Up.
228. In case of a voluntary winding up, the company shall, from
the commencement of the winding up, cease to carry on its business,
except so far as may be required for the beneficial winding up thereof:

Provided that the corporate state and corporate powers of the
company shall, notwithstanding anything to the contrary in its
articles, continue until it is dissolved.

229. Any transfer of shares, not being a transfer made to or with
the sanction of the liquidator, and any alteration in the status of
the members of the company, made after the copmencement of a
voluntary winding up, shall be void.

Effect of volun-
ary winding up
on business and
status of com-
pany.

Avoidance of
transfers, &c.,
after commence-
ment of volun-
tary winding up

Declaration of Solvency.

230.—(1) Where it is proposed to wind up a company voluntarily, Statutory de-
the directors of the company or, in the case of a company having Haren 3 sl
more than two directors, the majority of the directors may, at a proposal to
meeting of the directors held before the date on which the notices of pity
the meeting at which the resolution for the winding up of the com- ’
pany is to be proposed are sent out, 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
a period, not exceeding twelve months, from the commencement
of the winding un