If you have issued a Statutory Demand for an unpaid debt but still have not received payment from the debtor company, you may want to consider creating and issuing a winding up petition. This is a very serious step to take against a company, as if the petition is successful, it will result in the courts appointing an Official Receiver to liquidate the debtor company.
The first thing for you to consider if you want to issue a winding up petition is whether you are eligible to do so. Creditors can issue a winding up petition if the company owes them more than £750 and can prove that the company can’t pay the debt. You will also need to have issued a Statutory Demand before issuing the petition and have waited the requisite time to elapse without receiving payment of the amount demanded.
How to Create and Issue a Winding Up Petition
You must fill in Form 4.2.Copies of the form can be downloaded here. Form 4.2 is a simple two-page document, but you will need to have the correct information to hand to fill it out correctly, including:
- Name, Registered Address, Registration Number and paid up share capital of the debtor company. You can access this information through a search of the company register on the Companies House Website.
- The reason that you are issuing the winding up petition.
- A statement that you have served a Statutory Demand on the Company that has gone unpaid or that you have a court judgment against the debtor company about the unpaid debt.
Once you’ve filled out Form 4.2, you need to make three copies. Ensure a copy is served to them to the following places:
- If the company has a paid-up share capital of more than £120,000, the High Court, otherwise the court closest to the company’s registered office that deals with insolvency proceedings. You can search for the nearest court here. You must also pay the court fees.
- To an employee or a director of the debtor company.
Once you have served the petition to the employee or director of the debtor company, you will need to provide the courts with a Certificate of Service proving that you have done so.
The Court Accepts the Petition, Next Steps
If the court accepts the petition, they will notify you of the date of the winding up hearing in writing. This is the hearing where the court will hear your petition to have the company wound up and, if it is successful, issue a winding up order against the company.
You will need to advertise the winding up petition in The Gazette at least seven working days before the winding up hearing. You must then send a copy of the advertisement and certificate of compliance to the court at least five working days before the hearing.
Additionally, you must send the court a list of everyone who will be attending the hearing by 4.30pm the day prior to the hearing. Send a copy of the advertisement and a certificate of compliance to the court at least 5 working days before the hearing.
Issuing a winding up petition is a serious step to take and you should receive professional advice about the costs and implications. Here at AABRS we are happy to help. Simply call 0208 444 2000 for an initial discussion.