A company can be wound up by order of the Court because it is
unable to pay its debts, or in exceptional cases because it is the
interest of the public. This is known as compulsory winding up.
In England and Wales winding up petitions are presented in
the County Court. HMRC usually presents petitions in the High
Court. Companies registered in Scotland may be wound up in the
Court of Session (which is broadly the equivalent of the High
Court) or the Sheriff Court. HMRC actions to wind up Scottish
companies are taken in the Court of Session.
The compulsory winding up of a company will follow the
presentation of a winding up petition to the Court. (The Court may
also dismiss a petition or adjourn the hearing).
