Are you struggling with the fact that your company is not making profits at all? Are you afraid that your major creditors in the company may take a step toward getting their investments back by signing winding-up petitions with the help of a law firm?
If this is really going to happen, then as soon as you receive the winding up-petition, the courts will send the notice to your organization to attend the hearings and represent whether your business firm is really insolvent or has enough funds to pay to the debtors.
The following are some other important things about winding-up petition that you should definitely know:
What is the usual duration of a winding-up petition?
There are only seven days granted to react after receiving the petition. You must act as soon as possible if you have received a winding-up petition. Not acting within the least time possible can be risky for your business, and your company will be condemned into liquidation. For a piece of immediate advice in such a situation, you should only rely on a reputable law firm.
How can a Winding up petition be stopped?
Well, the way in which a winding-up petition can be stopped is solely based on the time period that has passed after the petition was issued. Well, the most simple rule is that you can stop a winding-up petition by simply taking immediate action. Court hearings and gazette advertisements can be easily avoided if you respond quickly. However, if you are not able to make any decisions on your own, then you can take the help of professionals for the most valuable piece of advice.
What to Expect After a Winding up petition has been granted?
In the simplest terms, a winding-up petition can be understood as a legal notice that is filed by the creditor with the request of a hearing if the debtor company is insolvent or not. It is an important step in the process of liquidation of any company. After the winding-up petition has been issued, there are still possibilities of halting the proceeding of the liquidation of the company.
The liquidation of the company starts after the order for winding up has been received. The granted winding-up petition becomes an order of the court. It will be considered as an order of the court after the completion of the hearings. Afterward, the court appoints an official liquidator to liquidate the company as soon as possible. Once the wind-up order is made by the courts, it can only be reversed in limited circumstances. Hence, the company will wind up after accepting the court orders.
How much time is taken to issue a wind-up petition?
The assistance of a solicitor is generally needed when a winding-up petition has to be filed. Well, the process of filing is quite easy, and it can be smoother if you have chosen the right legal team. However, the final hearing is not going to be as speedy and smooth.
The hearing date shall be updated to the involved parties after the submission of all the relevant documents in the court. Then there is going to be a waiting period of two weeks.
Who can File Winding-up Petition?
The following people/organizations can file a winding-up petition:
- The company
- Directors of the company
- The officiSecretaryers
- Secretary of state
- Attorney general ( if the case is related to a charitable company)
Just after the issuance of a petition, it will be served and advertised in the Gazette and later heard at the courts. As soon as the judge makes their decision on the credibility of the business firm and finds it insolvent, the orders will be issued to liquidate and wind up the company.
Well, you don’t need to get threatened if you receive a winding-up petition. You can hire a boutique law firm that specializes in handling winding-up cases. They can assist you with fruitful advice and can also help you in fighting against the petition.