What are the effects of a winding up order being made against a limited company?


Under Section 125 of The Insolvency Act 1986 the Court has the power on hearing a winding up petition against a limited company to either:

- Dismiss it or

- Adjourn the hearing conditionally or

- Adjourn the hearing unconditionally or

- Make an interim order or

- make any other order it thinks fit.


If a winding up order is made all power is taken away from the directors of your company. The financial and other affairs of your company are then placed into the hands of a civil servant known as the Official Receiver. Effectively your business is closed down. If you wish to avoid the consequences of a winding up order please contact me.