The Declaration of Solvency is a formal statement made by company directors in Hong Kong, affirming that the company can pay its debts within a specified timeframe, usually 12 months. This declaration is a legal requirement under the Companies Ordinance (Cap. 622) and is typically associated with specific events, such as the voluntary winding-up of a company.
Companies opting for voluntary liquidation must submit the Declaration of Solvency, assuring creditors that their debts will be settled. The declaration includes a statement of the company’s assets and liabilities, providing a comprehensive overview of its financial standing. Directors are legally responsible for the accuracy of this declaration, and any false statements may result in penalties.
This process contrasts with insolvent liquidation, where a company lacks the financial capacity to meet its obligations. The Declaration of Solvency aims to uphold transparency and protect the interests of creditors during the winding-up process. For businesses in Hong Kong, understanding and adhering to the requirements surrounding the Declaration of Solvency is pivotal when considering voluntary liquidation procedures.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
The Declaration of Solvency is a formal statement made by company directors in Hong Kong, affirming that the company can pay its debts within a specified timeframe, usually 12 months. This declaration is a legal requirement under the Companies Ordinance (Cap. 622) and is typically associated with specific events, such as the voluntary winding-up of a company.