67 Meaning of „solvency test“

(1) For the purposes of this Act, a company satisfies the solvency test if —
„solvency test“

(a) the company is able to pay its debts as they become due; and

(b) the value of the company‘s assets is greater than the value of its
liabilities.

(2) In determining whether the value of a company‘s assets is greater than the
value of its liabilities, the directors —

(a) shall have regard to —

(i) the most recent accounts of the company; and

(ii) all other circumstances that the directors know or ought
to know affect, or may affect, the value of the company‘s
assets and the value of the company‘s liabilities; and

(b) may rely on valuations of assets or estimates of liabilities that are
reasonable in the circumstances.

(3) This section applies to cells and cores of protected cell companies as if
references to companies were references to cells or cores, as the case may
be, of protected cell companies.