Presenting Winding Up Petitions
If a company owes you more than £750 and refuses to pay you, you can petition or threaten to petition to wind up the company. The Court fee involved to petition is £1,880. However, if there is a risk of a genuine dispute where the company then show good grounds to defend the claim, then this may result in the petition being dismissed with costs as the Court would expect you to obtain a judgment against a company in the first instance before instituting winding up proceedings. This may be recommended to be the first step to flush out the company forcing it to put forward details of the defence and made a payment for the undisputed sum on account.
We are able to offer you a fixed fee to embark on this process.
Defending Winding Up Petitions
We specialise in defending winding up petitions presented against companies for the non-payment of a demand or debt. We negotiate debt with creditors for our corporate clients.
A winding up petition is very serious matter and can lead to your company being placed into liquidation if it owes more than £750.
It is possible to reverse a winding up order within 7 days on the ground that the Court did not have all the relevant facts or a shareholder or creditor can apply to stay (freeze) the liquidation procedure following the making of a winding up order.
Advertisement of a Winding Up Petition
The advertisement of a winding up petition can damage a company. A company only has 10 days from the date of the winding up petition to prevent the winding up being advertised. We can assist in delaying the advertisement of the petition to allow time to enter into negotiations with creditors as banks will trawl the legal press and freeze any company's bank accounts having had winding up petitions presented against them. The banks also call in overdrafts as a result, damaging a company's financial position even further.
We can assist in obtaining a Validation order from the Court to allow directors to access funds or dispose of the company's assets, in the event a company winding up petition is presented.
We can obtain an injunction in the High Court where the petitioning creditor refuses to refrain from presenting or advertising the winding up petition.
Effect of a Winding up Petition on the Company
Once a winding up petition has been presented to the Court, directors will be unable to sell the company or any of the company's assets. In the event any assets are transferred or disposed or, the Court can subsequently set aside any such transactions. The ultimate ownership, also known as "beneficial ownership" of the assets within a company is not always clear. We ensure that directors or shareholders are able to retain any assets which may belong to them personally. We also establish whether third parties have rights over company assets as they may have paid towards their purchase.