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Influential Law
A very important piece of law governs
the period between the date of issue of the winding up petition
and the date of the hearing at which the order is made.
Sometimes this period is as short as
one and a half months but other times when hearings are adjourned
it can be a very much longer period.
The law is found at section 127 of the
Insolvency Act:
" Avoidance of property dispositions.
"
One can imagine dishonest company directors
stripping the assets of their company once they have received
a winding up petition and when they know that it will be a
month or so before the court "hears" the petition
and makes a winding up order. This section of the act makes
any:
- sale
- transfer
- gift
- assignment
in that period of no effect. Upon
application to the court however, some such transactions may
be given court approval.
The message is, "do not do
anything rash when you are in receipt of a winding up petition
- take professional advice as soon as you can".
Professional Review
Please click
here if you wish to read the typical content of a review
report.
The main purposes of a review are essentially to:
- get the best result for creditors
- enable the directors to continue
in business either in the same limited company vehicle or
in a re-start company.
Is a Winding-Up Order Inevitable?
No.
The company might wish to be placed
into a company voluntary arrangement, or be made subject to
an administration order or even a differently managed procedure
known as a creditors voluntary liquidation.
It is in your best interests to seek
professional advice as early as possible to review the situation
so that the best advice can be given.
If you would like to read further on
administration orders and creditors voluntary liquidations
you can find these sections on the limited company home page.
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