Declaration of solvency

Law. A statutory declaration made by the directors of a company, prior to its liquidation, to the effect that they have made a full enquiry into the affairs of the company and have formed the opinion that the company will be able to pay its debts in full within a period of not more than 12 months from the date on which the winding up/liquidation commences.

See also

• Liquidation
• Voluntary liquidation
• Winding-up