If you are just looking for information relating to a winding up petition, carry on reading. If on the other hand you need confidential advice then call 0800 24 0800.
Do you know what a winding up petition is and how bad it could be for your company and the consequences for you as a company director as well as your company? If you don’t then you had better sit down and find out what you need to do if you been served with a winding up petition for your company.
Some common questions are answered first before you proceed any further with the process. Watch theshort video and see what your options are.
What is a winding up petition?
Success in any business is not easy and without head aches. But sometimes even the most successful businesses face cash flow problems which could eventually lead to their undoing. This could be anything from bad debt due to the recession right through to competing businesses.
If a business owes money to its creditors and does not take the steps necessary to resolve any outstanding issues, it may be faced with a winding up petition.
Winding up petition and the consequences
If you have been issued with a winding up petition for your company because the company owes money. You can pay the money owed before the court date and get the case dropped or fight it if you believe it to be worth defending. On the other hand if you do nothing and the debt is not paid following the presentation of the petition, then the court will make a winding up order (“the order”) against your company.
As it’s a court led procedure, various rules come into play once the petition has been presented.
The presentation of a petition has serious consequences for the directors and the company, but before we go any further let me give you a case study of what can be achived with professional advice.
Case Study for better understanding
The presentation of a petition has serious consequences for the viability of your company and these are detailed below:
Protection of assets between winding up petition and order
Once the petition has been presented, a date is set for a court hearing at which the petition will be heard and a winding up order made against your company. A considerable time may elapse between the presentation of the petition and the hearing for the making of the order.
Invalidation of disposal of assets
Unless the court orders otherwise, any disposal of your company’s property, alteration in the status of its members or transfer of shares after the commencement of the winding up is void. The purpose of this provision is to preserve the value of the assets of a company for the benefit of persons interested in those assets.
At any time after the presentation of the winding up petition the court may appoint the Official Receiver or an insolvency practitioner to be the provisional liquidator of the company. The primary reason for such appointment is usually to safeguard the assets pending the winding up hearing. Since an appointment anticipates the making of a winding-up order this appointment is usually made only with the consent of the company itself or in a clear case of insolvency.
Compulsory liquidation takes away control from you as a director of the company and it is important for you to take control of the situation and be in control of your own destiny.
What will be the Next Step?
We understand that as a business owner you have worked day and night to ensure your business is successful. But sometimes even the most successful businesses face situations which are outside of their controls like the recession, the banks not being helpful right through to a client who might have left you with a bad debts.
Good news is even at this late stage in time you have options:
- Stop the winding up petition
- Stop Creditors hassling you
- Start a New Company
The next step is a complimentary conversation with UK’s Most Trusted Insolvency Auditor. This enables you to learn more about the options that might be open to you, even at this stage in time.
So why not pick up the phone and get some solid advice about getting out of your current situation, starting now. If you tell me what kind of an out come you would ideally like to see then I will take it from there and see how we can achieve that for you. So give me a call on 0800 24 0800 even the call is FREE.