How to wind a company up
Q. What does it mean to wind a company up?
A. The company will be dissolved, removed from the Register of Companies at Companies House and as such will no longer exist. The assets of the company will be divided amongst the creditors and distributed.
Q. What are the requirements before you can petition to wind a company up?
A. The company must owe you a sum of £750 or more and the debt must not be disputed on reasonable grounds.
Q. What is the first step?
A. First of all you should serve the company with a statutory demand giving the company 21 days to make payment. The statutory demand should be served at the registered office of the company by first class post.
Q. What if the company still fails to pay?
A. If you have not been paid after the 21 day period then the company will be deemed to be unable to pay its debts and you can present a petition to wind the company up.
Q. Does the petition have to be in a set format?
A. Yes. There is a prescribed form which is used. The form should include details of the parties, the debt and any interest payable. Evidence of the debt can be attached to the form.
Q. What happens once the petition has been filed at court?
A. The petition should be served on the company. The court will set a hearing date. Various procedural matters will then have to be attended to prior to the hearing. At the hearing the court will consider all arguments and if satisfied that the company is insolvent, will grant a winding-up order.
Q. What costs can be expected?
A. There will be a court fee of £7, an issue fee of £280, an official receiver deposit of £1,500, a petition advert of £181.20 and an agency fee of £40 plus VAT.
Q. Can mfg assist me?
A. Yes, Samuel Pedley has expertise in dealing with winding up petitions. The cost of a statutory demand is £150 plus VAT and the cost of a winding up petition starts from £600 plus VAT. For further information contact Samuel on firstname.lastname@example.org.