What is a statutory declaration by directors ensuring a company can pay its debts within a year called?

The correct term for a statutory declaration made by directors to ensure that a company is able to pay its debts within a year is known as a Declaration of Solvency. This declaration is crucial in corporate governance as it indicates that the company is solvent and can meet its financial obligations, thereby protecting creditors and shareholders. When a company issues this declaration, it typically provides a level of assurance to stakeholders about its financial health.

This concept is particularly relevant when a company is considering certain actions, such as declaring dividends or undergoing liquidation. The Declaration of Solvency reflects a careful assessment by the directors of the company's financial state. If a company cannot pay its debts and it issues such a declaration, the directors may face serious legal repercussions.

In contrast, other terms mentioned do not specifically denote the statutory obligation to declare solvency. An Affidavit of Capacity would usually refer to a sworn statement regarding a person's ability to perform certain duties or functions, but it does not apply directly to corporate solvency. A Certificate of Financial Health might imply a review of a company’s overall financial situation, but it is not the formal legal declaration required under statutory obligations. Similarly, a Statement of Financial Integrity is more general and does not specifically address the solvency or debt repayment capabilities