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PETITIONS FOR COMPULSORY WINDING-UP
Compulsory liquidation arises where the court orders that a
company be wound up following the presentation of a petition for
such an order. This is very necessary where, for example, the company may refuse to admit its insolvency and persists in trading, to the obvious detriment of its creditors or where an administrative receiver is unable to make recoveries in respect of voidable preferences or transactions at an undervalue and the creditors wish to pursue such a course.
s.122 The grounds upon which a winding-up petition may be based are:
- (a) a special resolution to wind up compulsorily has been carried
by the company:
- (b) a company registered as public on incorporation has not
been issued with a certificate under CA 1985,s. 117(Public company
share capital requirements), and more than a year has expired since it
was so registered;
- (c) the company is an old public company within the meaning Q
the Companies Consolidation (Consequential Provisions) Act 1985
s. 1;
- (d) the company does not commence its business within a year
from its incorporation or suspends its business for a whole year;
- (e) the number of members is less than two;
- (f) the company is unable to pay its debts;
- (g) the court is of the opinion that it is just and equitable that the company should be wound up;
- (h) from a report of inspectors under CA 1985, s.437, or from
information or documents obtained under CA 1985, ss. 447 or 448,
it appears to the Secretary of State that it is expedient in the public
interest that the company be wound up provided that the court
thinks it just and equitable to do so.
For more information e-mail jarnold@creditman.co.uk
WINDING UP PETITIONS
2001
2000
1999
1998
Records of most winding up petitions for 1998 are available on request. Email jarnold@creditman.co.uk
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