Section 124Part 5 — Company Restructuring and Winding Up
Application for supervision order
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Where a company is being wound up voluntarily its liquidator shall apply to the Court for an order that the liquidation continue u nder the supervision of the Court unless, within twenty - eight days of the commencement of the liquidation, the directors have signed a declaration of solvency in the prescribed form in accordance with subsection
. ( 2 ) A declaration of solvency means a d eclaration or affidavit in the prescribed form to the effect that a full enquiry into the company ’ s affairs has been made and that to the best of the directors ’ knowledge and belief the company will be able to pay its debts in full together with interest a t the prescribed rate, within such period, not exceeding twelve months from the commencement of the winding up, as may be specified in the declaration.
A person who knowingly makes a declaration under this section without having reasonable grounds for the opinion that the company will be able to pay its debts in full, together with interest at the prescribed rate, within the period specified commits an offence and is liable on summary conviction to a fine of ten thousand dollars and to imprisonment for two years.