When can winding up petitions be issued?

Can you issue a winding up petition?

Issuing a winding up petition is perhaps the most powerful weapon in any creditor’s armoury. You effectively petition the court to issue a winding up order against the company. A hearing date will be set and the debtor informed. However it should only be used as a last resort.

In what circumstances a court an wind up a company?

Winding up of a company is defined as the condition when the life of the company is brought to an end. The properties of the company are administered for the profit of its members and its creditors.

What’s a winding up petition?

A winding up petition (WUP) is a legal action taken by a creditor or creditors against a company that owes them money (although others can also petition). … This is an expensive option for creditors, and is considered to be a last resort, so it is only used when all other approaches to retrieve the debt have failed.

Can you issue a winding up petition without a statutory demand?

No. A statutory demand is usually the first step a creditor will take to let a debtor company know it is serious about recovering a debt and is prepared to take legal action. … If the statutory demand is not paid or challenged, the creditor will then have the necessary authority to go on to issue the petition.

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Who can issue a winding up notice?

A WUP can be issued directly by any creditor that is owed money. Multiple creditors can petition for a WUP to be issued and HMRC can also issue one for owed tax arrears.

Who can present a winding up petition?

A petition to wind up a company may be presented by the company, the directors, any creditor or creditors, a contributory or contributories, the clerk of a magistrates’ court in the exercise of the power conferred by section 87A of the Magistrates Court Act 1980 (enforcement of fines imposed on companies), any …

When can a company be voluntarily wound up?

If two thirds in value of creditors of the company are of the opinion that it is in the interest of all parties to wind up the company, then the company can be wound up voluntarily. If the company cannot meet all its liabilities on winding up, then the Company must be wound up by a Tribunal.

Which persons and under what circumstances can file a petition for winding up of company before the tribunal under Companies Act 2013?

Any person authroised by the Central Government or by the Central Government or a State Government: a petition may be filed in a case under Section 271(b) i.e. where the Company acts against the interest, security of the State.

What are the circumstances in which a company may be compulsorily winding up on the orders of tribunal?

In case the company does not pay the debts, the debt of the creditor exceeding Rs 1 lakhs is due and unpaid by the company within 21 days from the due date, or any execution decree is passed in favour of the creditor or tribunal has a reason that company will not pay off any debts then company would be liable for …

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Who can file petition for winding up under section 272?

4. Any person authorized by Central Government shall be entitled to present a petition for the winding up of the Companyif Tribunal is of the opinion that winding up of the Company is just and equitable or if the Company has acted against the interests of the sovereignty and integrity of India.