Court liquidations are also known as “official liquidations” or “winding up by the court”. They are also sometimes known as compulsory liquidations. The liquidation itself is commenced by Order of the court on foot of a petition.
Who May Present a Petition?
The following parties are entitled to bring a petition to wind up a company:
In practice, the majority of winding up Petitions are presented by creditors.
Grounds for The Presentation of a Petition
Grounds for presenting a petition to have a company wound up are as follows:
- Where the company has “by special resolution resolved that the company be wound up by the court”.
- Where the company “does not commence its business within a year from its incorporation or suspends its business for a whole year”.
- Where the company is unable to pay its debts.
- Where the court is of the opinion that it is “just and equitable to wind up the company”.
- Where “oppression” has been proved to the satisfaction of the court.
How Can We Help?
We can act as the official liquidator.
For further information please contact Jim Stafford or Tom Murray on 01 661 4066 or stafford@liquidation.ie or murray@liquidation.ie