Companies Act, 1973 (Act No. 61 of 1973)Chapter XIV: Winding-up of CompaniesVoluntary Winding-up350. 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. |