What is a winding up petition?

What is a winding up petition?

What is a winding up petition? A winding up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money (although others can also petition).

When can you petition for winding up?

Who Can File Petition For Winding Up. Any creditor or creditors of the company may present a petition to the Court for winding up, alleging that the company is unable to pay the debts of the creditor in the manner specified in section 433 or 434.

Are winding up petitions public?

The petition notice must be advertised at least seven days before the scheduled petition hearing. Once it is advertised, the petition will be in the public domain and the banks, which check The Gazette on a daily basis, could freeze the company’s bank accounts.

What is the procedure to wind up a company?

Procedure- Winding up of a Company

  1. Petition Filed for Winding up of a Company.
  2. Statement of Affairs of the Company.
  3. Advertisement.
  4. Appointment of Provisional Liquidator.
  5. Send notice to the Provisional Liquidator.
  6. Winding up Order.
  7. Custody of Property.
  8. Affairs of the company.

How do I get a winding up order?

Your creditor will ask their solicitor or legal team to apply for a compulsory winding up order. The winding up ‘petition’ is the name given to the application sent to court. It is reviewed by the court, and if passed, sent to the insolvent company.

Who serves a winding up petition?

It is integral for a winding up petition to be served by the petitioner upon the debtor, according to paragraph 2 of Schedule 4 to the Insolvency Rules 2016 (rule 7.9(1)).

What happens after a winding up petition?

After you have received a winding up petition, the courts will hold a hearing to establish if the company is truly insolvent and cannot pay its debts. If the company is deemed insolvent, the court will issue a winding up order and will appoint an Official Receiver to liquidate the insolvent company.

Who can apply to wind up a company?

Who can make a winding up application? The most common party to file an application to wind up an insolvent company under section 459P of the Act are its creditors.

Who can issue a winding up petition?

A petition to wind up a company may be presented by the company, the directors, any creditor or creditors, a contributory or contributories, the clerk of a magistrates’ court in the exercise of the power conferred by section 87A of the Magistrates Court Act 1980 (enforcement of fines imposed on companies), any …

Who can file petition for winding up of company?

(3) A contributory shall be entitled to present a petition for winding up a company, notwithstanding that he may be the holder of fully paid- up shares, or that the company may have no assets at all, or may have, no surplus assets left for distribution among the share- holders after the satisfaction of its liabilities.

Who can issue a winding up notice?

Who can issue a winding up petition? A WUP can be issued directly by any creditor that is owed money. Multiple creditors can petition for a WUP to be issued and HMRC can also issue one for owed tax arrears. In the initial stages, a creditor is likely to attempt to recover any outstanding debt […]

Can you stop a winding up petition?

A company director can overcome a winding up petition by applying for a court injunction if the director demonstrates that the debt is legitimately under dispute. If a dispute is proved, it is not necessary to prove the company’s solvency.

What is the cost of winding up a company?

How to Close Private Company in India? A Company closure is filed under Form STK 2 (Earlier form was FTE) along with the government fees of Rs. 5000/- and some necessary docs. However it is important to note the cases where closure can be filed.

What is the procedure of winding up of a company?

What happens when you get a winding up petition UK?

Any creditor who is owed more than £750 can present a winding up petition to the courts. After you have received a winding up petition, the courts will hold a hearing to establish if the company is truly insolvent and cannot pay its debts.

How do I search a winding-up petition?

A computerised register of winding-up petitions is maintained for all petitions presented to either the Companies Court, a Chancery District Registry or a county court with jurisdiction. It may be searched by personal attendance at the Companies Court General Office, or by telephone on 020 7947 7328.

How long does it take to file a winding up petition?

Filing a winding up petition is usually done with the assistance of a solicitor. The actual filing is relatively swift and will depend on the efficiency of your legal team. Waiting for the actual hearing will take a little longer.

How do I file a petition to liquidate a company?

The petition is filed at the appropriate court with the statement of truth and deposit and with sufficient copies for service on the company (unless the company is the petitioner) and, where appropriate, for sending to: da. the member State liquidator (if appointed in main proceedings in relation to the company),