Partnership Liquidations - Winding up petition - As an unregistered company
Winding up Petitions
A Partnership is placed in Liquidation if it has a winding up petition presented against that insolvent partnership, (as if it were an unregistered company), if it has or had, in England and Wales either:
- a principal place of business or
- a place of business where the debt or part of the debt arose, which is the basis for the petition.
A partnership can be wound up and liquidated as an unregistered company if:
- the partnership is dissolved, or ceases to trade.
- if the partnership is unable to pay its debts.
- If a court feels it is just and equitable to wind it up.
A partnership winding up (or liquidation) petition can be presented by the following:
- the liquidator or administrator of a corporate member or former corporate member of the partnership.
- the trustee of a partner who is an individual.
- The supervisor of a voluntary arrangement of a member of the partnership.
- A creditor of the partnership
Once the petition has been heard by the court and a winding up order made, the Official Receiver will be appointed to deal with the Partnership's affairs as liquidator. From this it can be seen that it may be better for partners in a partnership to consider a Partnership Administration or Partnership Voluntary Arrangement rather than a Partnership Liquidation.