What is court winding up?
If a company has no prospect of avoiding liquidation and typically where the company has little or no assets available for creditors, the company can be wound-up by petitioning the Court, and placed into compulsory liquidation. The petition can be presented by the directors of the company, the company (Shareholders) or by a creditor of the company.
If presented on behalf of the company or its directors, a resolution for winding up must be passed. If the petition is on behalf of a creditor, the creditor must demonstrate to the court that the company is insolvent. Usually, the creditor will seek to show that the company cannot pay its debts as they fall due.
The petition will be advertised and, in due course, a winding up order will be made and an interim liquidator will be appointed.
When to consider winding up
The purpose of this procedure is to ensure that the business is closed, any assets of the company are realised for the benefit of the company's creditors and its affairs are brought to an orderly conclusion.
Following their appointment the interim liquidator is responsible for winding-up the company the affairs of the company, safeguarding and realising the assets of the company for the benefit of the company's creditors, calling a meeting of the company's creditors to appoint a liquidator as well as considering and reporting to the Insolvency Service on the conduct of directors.
Court Winding Up Petitions (WUP) Glasgow & Edinburgh, Scotland
We understand that facing up to financial challenges can be extremely difficult and stressful. However, you should be reassured to know that there are options available and, with the right advice and support, you can take the necessary steps to improve your situation.
For further information on compulsory liquidation and advice on winding up petitions (WUP) for your company, contact us today at an office near you.