Types of voluntary winding-up:

There are two types of voluntary winding-up, viz. Members’ voluntary winding-up and Creditors’ voluntary winding-up. Where the directors are in a position to make the statutory declaration of solvency required under Section 488 of the Act, the winding-up would be conducted as a Members’ voluntary winding-up and would be controlled by the members themselves, the creditors would have no voice in the proceedings. If the directors do not make such a declaration, the winding-up would be conducted as a creditors voluntary winding-up and the creditors shall have a controlling voice in the procedure. In both the cases, the process of liquidation would be normally conducted without reference to the Court; although the Court shall have the power to determine any matter the liquidator or any creditor or contributory might refer to it.