Following the amendment of the Companies Act 2015 it is not expected that there will be any more Court liquidations as such. Court liquidations used to be also known as:
1. Official liquidations
2. Winding up by the court
3. Compulsory liquidations
The liquidation itself is commenced by Order of the court on foot of a petition. Once appointed, the liquidator will carry out the liquidation as a Creditor’s Voluntary Liquidation.
Who May Present a Petition?
The following parties are entitled to bring a petition to wind up a company:
- A creditor or a contingent creditor
- The Company
- The Registrar of Companies
- Attorney General
In practice, the majority of winding up petitions are presented by creditors.
Grounds for The Presentation of a Petition
Grounds for presenting a petition to have a company wound up are as follows:
- Where the company has “by special resolution resolved that the company be wound up by the court”.
- Where the company “does not commence its business within a year from its incorporation or suspends its business for a whole year”.
- Where the company is unable to pay its debts.
- Where the court is of the opinion that it is “just and equitable to wind up the company”.
How Can We Help?
Act as the nominated liquidator.
For further information please contact us at email@example.com or 22-264455.
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