Compulsory Winding Up/Liquidation by Court
This is by way of a petition following Form 19 in Schedule 1 of the Insolvency Regulations, 2013. One can petition court to wind up a company if it cannot pay its debts or has failed to honor a statutory demand.
The High court has jurisdiction to hear all Insolvency matters.
• Presentation of petition for winding up of company to Court- Form 19 of the Insolvency Regulations supported by an affidavit.
• Service of Petition on company, creditors, contributory and Official Receiver.
• Public Notice of the petition within 7 days after filing petition- Form 4 of the Insolvency Regulations.
• Reply to the petition must be filed within 15 days after service of the petition by affidavit in reply.
• Every creditor who wishes to be heard on the petition shall within 5 days after publication of petition give notice to court of the intention to appear and be heard. Notice shall be in Form 5 of the Insolvency Regulations.
• Hearing of petition; After expiry of the time of filing the reply to the petition, the petitioner shall take out a hearing notice and serve it on every creditor who gave notice of intention to appear.
• After hearing the petition, the court may either make an order for winding up on satisfaction of inability to pay debts, dismiss or adjourn the hearing.
• The Court shall appoint the Official Receiver or any other Insolvency Practitioner as provisional liquidator.
• The Liquidator shall within 14 days after commencement of liquidation give public notice of commencement of liquidation and call a shareholders meeting.
• Within 5 working days give notice of his appointment in gazette and newspaper.