Companies Act 2014 section 562

Types of voluntary winding up — general statement as to position under Act

Section 562 sets out the two types of voluntary winding up available under the Act and explains the circumstances that determine which type applies.

• A voluntary winding up will normally be a members' voluntary winding up, provided the correct procedures (Summary Approval Procedure or section 580 route) are followed and no disqualifying event occurs.
• Three events can block a members' voluntary winding up: failure to make the required declaration of solvency, a court order under section 582(2), or the holding of a creditors' meeting under section 584.
• Where any of those blocking events occurs, or where the creditors' voluntary winding up procedure under section 586(2) is used instead, the winding up becomes a creditors' voluntary winding up.
• The court retains a separate power under section 572(4) to direct that a company be wound up as a members' voluntary winding up, regardless of the rules above.

---