Winding up

From Lawiki - The law notes repository
Jump to navigation Jump to search
Lawiki for and by law students - find us on Facebook if you want to help us edit this Law Wiki.

Not professional advice - LAWIKI cannot guarantee the validity of any information




Winding up is the process of dissolving the legal identity of a registered company (see: Registered company). This process does not happen automatically, even if all the members of the company die; it has to happen at the instigation of the members (directors) -- voluntary winding up -- or of a court. A petition for compulsory winding up may be presented to a court by:

   * any member of the company, or
   * a creditor of the company, or
   * the Department of Trade.

Grounds for winding up include:

   * the company's being unable to pay its debts;
   * failing to commence business within one year;

* that it would be equitable to wind up.

UK LAW