Commentary

127.4 The risk of insolvency

COMMONHOLD vol 8(1)
| Commentary

127.4 The risk of insolvency

| Commentary

127.4 The risk of insolvency

The termination process may be begun only on the basis of a members’ voluntary winding up, in other words the directors of the association must consider the association to be solvent1. It may be that the directors do not accurately estimate the value of the assets and liabilities of the association, or that some unforeseen liability comes to light in the course of the winding up. In that event, the surplus available for distribution to unit-holders may be less than expected, and at worst the association may be found to be insolvent. The members’ voluntary

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