Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the ACCA Certification Exam with interactive quizzes and detailed explanations. Get a head start on your success with our comprehensive study tools.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the maximum number of individuals that can serve on a liquidation committee during creditors voluntary winding up?

The correct answer is: 5

In a creditors voluntary winding up, the formation of a liquidation committee is intended to provide oversight and ensure the interests of the creditors are represented during the winding-up process. The maximum number of individuals that can serve on this committee is typically five. This limit is established to maintain a manageable and effective group that can make decisions and provide guidance for the liquidator without becoming unwieldy or inefficient. Having five members allows for a diverse range of creditor interests to be represented while ensuring that the committee remains functional. A smaller group can deliberate more effectively and reach consensus on critical issues, which is essential in the dynamic environment of a liquidation process. The rationale for the limit is to prevent complications that may arise from having too many members, such as disagreements or difficulties in coordinating meetings. This structure aims to balance representation and efficiency, which is crucial in managing the interests of creditors effectively during the winding-up proceedings.