Winding Up Companies

A winding up application is the process by which a person (whether a creditor, director or shareholder) of a company applies to a court to have a company placed into liquidation.

Although the most common form of winding up application is that brought by a creditor following the failure of a debtor company to pay a statutory demand, there are a variety of reasons why, apart from insolvency, that is may occur, such as:

  • the company has by special resolution resolved that it be wound up by the Court;
  • the affairs of the company are being conducted in a manner that is oppressive or unfairly prejudicial to a member or members or in a manner that is contrary to the interests of the members as a whole; or
  • the Court is of opinion that it is just and equitable that the company be wound up(often this occurs as a result of a breakdown in relationships between director/shareholders).

If you require legal advice in relation to any aspect of winding up applications, please contact us to arrange a meeting so that we may consider your specific circumstances.

The above information in relation to winding up applications is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.