INS1510 - Company liquidation: Compulsory winding up

Winding up petition

A petition for the compulsory winding up of a company (4.7 IR 1986) will generally be presented by

• the company or its directors (if it has been decided by special resolution that the company be wound up by the Court)
• any creditor or creditors (sometimes when the issue of a Statutory Demand has not produced payment of the debt within three weeks)
• the supervisor if the company is subject to a voluntary arrangement
• the administrator of a company in administration if compulsory liquidation is the exit route chosen from the administration

or, in Scotland

• following service of a charge for payment on an extract decree, the days of charge (usually 14 days) expire without payment
• following service of a demand for payment within seven days (a seven day warning letter,).

When a creditor presents the petition the date of the hearing must be advertised in the London Gazette. In Scotland petitions are advertised in the Edinburgh Gazette and a newspaper circulating in the area where the company has its registered office. Other creditors may then give notice of their intention to support the petition.

HMRC will not normally petition for winding up unless the debt is more than £750 (the statutory minimum) and the total HMRC arrears are £5,000 or more.

Any disposal of property after the commencement of the winding up is void unless the Court orders otherwise. If HMRC receives payments from the company, and HMRC has presented the petition, that amount may be repayable to the liquidator. In this case you must seek further advice from EIS (see the Contact List on the Insolvency intranet website).