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CREDITORS' VOLUNTARY WINDING UP:
If no declaration of solvency is made and delivered to the registrar, the liquidation process is a creditors' voluntary winding up even if in the end the company pays its debts in full.
To commence a creditors' voluntary winding up the directors convene a general meeting of member to pass a special resolution. They also convene a meeting of creditors, sending notices to creditors individually and advertising the meeting once in the Kenya Gazette and once at least in a newspaper circulating in Kenya: s.286(2).
The meeting of members is held first and its business is:
(a) to resolve to wind up;
(b) to appoint a liquidator; and
(c) to nominate representatives to be members of the committee of inspection.
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