Declaration of solvency

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UK 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