INS1535 - Company liquidation: Compulsory winding up

Winding up order

Section 129 of Insolvency Act 1986, sets out the circumstances and conditions in which a company may be wound up by the Court. On hearing a petition the Court will make an order for the winding up of a company when

• the conditions and rules for presenting a petition have been correctly followed and
• the Court is satisfied that the company is unable to pay its debts.

In England and Wales on making a winding up order the Court will

• appoint the Official Receiver (except in the circumstances below)
• give notice of the winding up to the Official Receiver
• send a copy of the order to the company and the Registrar of Companies.

The Court may also appoint as liquidator the

• company administrator immediately upon the discharge of a company administration order
• supervisor at a time when there is an approved voluntary arrangement in force.

Whoever is appointed is responsible for ensuring that the winding up order is made public by placing a notice in the London Gazette.

In Scotland on making a winding up order the Court will appoint an interim liquidator who normally holds office for 28 days.