Declaration of solvency

Law.

A statutory declaration made by the directors of a company prior to its winding up or liquidation.

The declaration of solvency states that the directors:

1. Have made a full enquiry into the affairs of the company, and
2. 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 or liquidation commences.

See also

• Liquidation
• Voluntary liquidation
• Winding-up