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.
How to petition.
- The creditor has to prove that the company has failed to pay its debts.
- Fill in the petition form which entails;
- The name, address, nature and type of the company.
- The consideration for the debt, how it is owed, when the debt was incurred or became due.
- Whether the company has failed to comply with a statutory demand.
- Whether the statutory demand has not been set aside or there is no application for extension of time.
- Whether the company is unable to pay its debts.
- Whether the company has been declared insolvent.
- Attach an affidavit on the petition sworn by the creditor in the presence of a commissioner of Oaths.
- Serve the respondents with the petition.
- Give public notice of the petition by putting it in the gazette or a newspaper.
- Every other creditor who wishes to be heard has to give notice to the court and to the petitioner.