Section 95: Effect of company's insolvency., Insolvency Act 1986

This section applies where the liquidator is of the opinion that the company will be unable to pay its debts in full (together with interest at the official rate) within the period stated in the directors' declaration under section 89.

The liquidator must before the end of the period of 7 days beginning with the day after the day on which the liquidator formed that opinion—

make out a statement in the prescribed form as to the affairs of the company, and

send it to the company's creditors.

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The statement as to the affairs of the company . . . shall show—

particulars of the company's assets, debts and liabilities;

the names and addresses of the company's creditors;

the securities held by them respectively;

the dates when the securities were respectively given; and

such further or other information as may be prescribed.

The statement as to the affairs of the company shall be ...—

in the case of a winding up of a company registered in England and Wales be verified by the liquidator, by a statement of truth; and

in the case of a winding up of a company registered in Scotland, contain a statutory declaration by the liquidator.

The company's creditors may in accordance with the rules nominate a person to be liquidator.

The liquidator must in accordance with the rules seek such a nomination from the company's creditors.

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If the liquidator without reasonable excuse fails to comply with subsections (1) to (4A), he is liable to a fine.

Section 95: Effect of company's insolvency.

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