A winding-up hearing takes place if a Court decides to accept a winding – up petition from a creditor. All winding – up hearings take place in the High Court. The court needs to understand the circumstances of each case when a winding up petitionis presented. They’ll look for the unquestionable existence of the debt, and expect your creditor to have made several attempts to recover their money.
A hearing allows both parties to put their case to the court, present evidence, and enable an informed judgment to be made on whether to grant a winding up order.
See full list on begbies-traynorgroup. The hearing can be attended by yourself as a director, and it’s highly advisable to seek professional representation in court. The petitioner will also attend with his or her representation, and if there is more than one petitioning creditor, each one is likely to have their own legal party to represent them.
The judge will want to establish that the creditor’s motives are genuine in petitioning for the company to be wound up – in other words, that they’re sincerely attempting to recover their debt and don’t have any other motives. Checks will be made on whether the creditor has followed statutory process during the course of petitioning – that the winding up petition has been properly serve for example, and an advert placed in the Gazette. Obtaining professional support as quickly as possible is vital to successfully challenging a winding up petition, and administrators are allowed to attend the court in these circumstances to make representations in your favour.
They may be able to persuade the court that you can repay the debt given a little more time, in which case the judge may adjourn for a given period of time.
Begbies Traynor can provide valuable professional expertise and assistance if you’re facing a winding up petition. We’re insolvency specialists and will explain all your options in this worrying situation. Please contact one of our partner-led team for more information on how we can help – we offer free same-day consultations and operate a nationwide network of offices. A division bench of Chief Justice.
Can a petition for winding up be dismissed? What is winding up proceedings? When a company is wound up compulsorily by the Court, the winding up is deemed to have commenced at the time of presentation of the Originating Summons for winding up. After service of the winding up petition, the Court is involved and a date will be set for a winding up petition hearing.
Who attends the winding up petition hearing ? The petitioner, creditors, anyone with an interest in the company’s property, the company and its’ shareholders all have the right to attend the hearing and be heard at the. A winding up petition can be dismissed before the court hearing is held by the petitioning creditor. This will often be the case if the debt covered by the winding up petition has been pai and the petitioning creditor does not want any other creditor to take over the petition and wind up the company. The petitioning creditor may alternatively attend the hearing seeking an adjournment (a delay) of the winding up petition. That may occur if the petitioning creditor (or its lawyers) is in negotiations with the debtor over payment and the debtor requires more time to pay the winding up petition debt.
Liquidation legally ends or ‘winds up’ a limited company or partnership.
There is a different guide if you want to wind-up a partnership). There are three ways a company can be liquidated. For a solvent company whose directors have decided to stop trading it’s members voluntary liquidation. Alternatively you can choose to.
If your company is ‘solvent’ (can pay its debts) and: 1. Find out how to apply for members’ voluntary liquidation. You’ll be asked to make a ‘declaration of solvency’. Companies Register 2. It’s a criminal offence to do this if you know the company is i. A director can apply to wind up an insolvent company in two ways: 1. The official receiver will investigate why the company became insolvent and whether this was caused by unfit conduct by any of the directors.
If you’re a director of a company that has gone into insolvent liquidation, you’ll be banned for years from forming, managing or promoting any business (including companies) with the same or similar name to your liquidated company. A banned name includes: 1. This restriction applies to both r. Steps to be taken after the hearing if a Winding Up Order is made 6. The plaintiff will be able to obtain a copy of the Winding Up Order made through the Commonwealth Courts Portal (CCP). If a winding up petition is defende the court are unlikely to make an order at the first hearing. It is likely that the winding up petition hearing will be adjourned to a date one time in the future to allow the parties more time to put forward their respective cases. Appealing a Winding Up Order.
The winding – up petition hearing. Timeline: approximately 4-weeks from the court accepting the petition. The court will consider creditors submissions and either dismiss the petition, adjourn the hearing to a later date or make a winding up order to place the company into compulsory liquidation. Request that the courts adjourn or cancel the winding up hearing.
Stopping a Winding up Petition that has been Advertised in The Gazette. After this point, your options are much more limited. If the petitioner believes that the assets of the company are in jeopardy, he may apply to the court, after the filing of the winding – up petition, for the appointment of a provisional liquidator to safeguard the assets of the company prior to the hearing of the petition.
You can: Dispute the debt.