The consequences of a winding up petition are serious for companies. There may be several reasons for winding up of the company including mutual agreement among stakeholders, loss, bankruptcy, death of promoters etc. Winding up is the process of settling the accounts and liquidating the assets of a company for the purpose of making distribution of the net assets to members and dissolving the company. Winding Up is the name given to the process of closing a business. (1) On the making of a winding-up order, a copy of the order must forthwith be forwarded by the company (or otherwise as may be prescribed) to the registrar of companies, who shall enter it in his records relating to the company. September 1997 . The winding-up petition. Business Liquidation Effects are Dependant on the Type of Insolvency. A Winding Up Petition could have serious consequences for you and your business. Consequences of winding-up order (1) When a winding-up order has been made or a provisional liquidator has been appointed, no action or proceeding shall be proceeded with or commenced against the Company or its property, except by leave of the Court and subject to … In most cases, if no action is taken, the procedure results in the complete dissolution of the company. It generally takes around 28 days in total for a winding up order to take effect.
The procedures are laid down in Part V of the Companies (Winding Up … The winding up of a company is the last stage of a companies’ existence.
The directors will lose all power as a result and are dismissed. The winding up ‘petition’ is the name given to the application sent to court.
Winding up is the process by which the company is put to an end that is the process through which its corporate existence is ended and it is thereafter finally dissolved.
It is reviewed by the court, and if passed, sent to the insolvent company. Compulsory Liquidation – Where creditors have forced a company into liquidation, an Insolvency Practitioner will take control of your business, leaving directors with few options. Consequences of a winding up petition. 45.38 Verification of winding-up petition (Amended October 2010) The form of the winding-up petition is prescribed by the Insolvency Rules and this form must be used with such variations, if any, as circumstances may require  .The petition must be verified by a statement of truth, authenticated by the petitioner or an authorised person . It is therefore very important to understand what a Winding up Petition is and the implications of receiving one.