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Fast-track insolvency & voluntary liquidation MCQs with Answers

Practise Fast-track insolvency & voluntary liquidation and check your answers.

Question 1

What is the status of the fast track corporate insolvency resolution process under Chapter IV of Part II (sections 55 to 58) as of 1 October 2026?

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Question 2

Under section 59(1), voluntary liquidation proceedings under the Code may be initiated by a corporate person that:

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Question 3

For voluntary liquidation of a company, the declaration by a majority of directors under section 59(3)(a) must be made on affidavit and must state that:

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Question 4

Consider the following statements about voluntary liquidation of a company under section 59:
(i) The special resolution of members must be passed within four weeks of the directors' declaration.
(ii) Where the company owes any debt, creditors representing two-thirds in value of the debt must approve the resolution within seven days.
(iii) The proceedings are deemed to commence on the date of the creditors' approval.
(iv) The Adjudicating Authority's prior approval is required before the members pass the resolution.
Which of the statements are correct?

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Question 5

After the 2026 amendment of section 59(2) of the Insolvency and Bankruptcy Code, 2016, within what maximum period must the voluntary liquidation of a corporate person be completed, as may be specified?

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Question 6

Section 59(5A), inserted in 2026, allows a voluntary liquidation proceeding of a company to be terminated before the application for dissolution is filed if:

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Question 7

The directors of Ruby Ltd start a voluntary liquidation so that its assets can be distributed before a supplier's pending claim is decided, intending to defeat that claim. What may follow under section 65(2) of the Insolvency and Bankruptcy Code, 2016?

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