Winding up

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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.