What documentation confirms the financial stability of a company during a voluntary liquidation?

The documentation that confirms the financial stability of a company during a voluntary liquidation is a declaration of solvency. This document is crucial because it is a formal statement made by the directors of a company, certifying that the company is able to pay off its debts in full within a specified period (typically within a year). The declaration verifies that the company has carefully assessed its finances and believes it can settle all liabilities.

In the context of voluntary liquidation, a declaration of solvency is particularly important since it must be filed with the company's registration authority to proceed with the liquidation process. It demonstrates to creditors and stakeholders that the company is not insolvent and is, in fact, in a position to meet its obligations, thereby enhancing trust in the liquidation process.

The other options, while relevant to the overall financial health of a company, do not specifically confirm its solvency during liquidation. An audit report provides an independent assessment of the financial statements but does not indicate the company’s current ability to pay off debts. Final accounts reflect the financial position of the company but may not be sufficient to show ongoing financial stability without the context provided by a declaration of solvency. A shareholder agreement pertains to the internal arrangements of the shareholders and does not address the company’s financial position at