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7 Petitions by Creditors

From: Applications to Wind up Companies (4th Edition)

Derek French
Edited By: Stuart Sime

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 22 February 2024

Creditors may petition concurrently for the winding up of a partnership and the winding up or bankruptcy of a member or former member of the partnership. It must state how the petitioner came to be a creditor, merely describing the petitioner as ‘creditor’ is not sufficient. A creditor of a private company may apply under the Companies Act 2006, s 758, if the company has contravened the prohibition on public offers by private companies. If a company fails to comply with a statutory demand within 21 days, it will be deemed to be unable to pay its debts, and the claimant may present a winding-up petition. The Court of Appeal held that there should be no order as to costs up to the time the petition was served, but the company should pay the petitioner’s costs thereafter. The onus is on the company to show why it should not be ordered to pay the petitioner’s costs.

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