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Companies Act, 1973 (Act No. 61 of 1973)

Chapter XIV: Winding-up of Companies

Voluntary Winding-up

350. Members' voluntary winding-up and security

 

 

1) A voluntary winding-up of a company shall be a members' voluntary winding-up if the resolution contemplated in section 349 so states, but such a resolution shall be of no force and effect unless-
a) it has been registered in terms of section 200; and
b) prior to the registration thereof-
i) security has been furnished to the satisfaction of the Master for the payment of the debts of the company within a period not exceeding twelve months from the commencement of the winding-up of the company; or
ii) the Master has dispensed with the furnishing of such security on production to him of-
(aa) a sworn statement by the directors of the company that it has no debts; and
bb) a certificate by the auditor of the company that to the best of his knowledge and belief and according to the records of the company, it has no debts.

 

2) The costs incurred in furnishing the security referred to in paragraph (b) of subsection (1) may be recovered from the company concerned.

 

3) Unless otherwise provided, in a members' voluntary winding-up the liquidator may without the sanction of the Court exercise all powers by this Act given to the liquidator in a winding-up by the Court, subject to such directions as may be given by the company in general meeting.