When an irate creditor wishes to serve a Winding up Petition, they must apply to the Court.
If the Court is satisfied with the petition, it will seal the petition and return it to the claimant or petitioning creditor endorsed with the date and time it was filed in addition to the date and venue of the Court hearing. At this point, the petition must be served on the company either by the claimant or a process service provider, if preferable.
Once the petition has been served on the company, a certificate of service must be completed by the claimant and filed with the Court. In line with insolvency rules, it’s vital that this document is filed no less than five days before the Court hearing of the petition.
Completing the Certificate of Service
The purpose of the certificate of service is to prove that the petition has been served on the company. It must contain all the relevant details relating to the winding up petition, such as the Court in which the petition was filed, the claim number, name of the claimant and its company registration number, name of the defendant and its company registration number, date the petition was served and who the petition was served on; noting the position of the individual within the business.
The certificate of service must also detail how and where the petition was served. For example, whether the petition was served in person, by email, post, or by any other means. The statement of truth is located at the bottom of the document and must be signed and dated by the claimant. In doing so, the claimant verifies that the facts contained in the document are true.
After Serving of the Petition
If the petition is successful, the Court will grant a winding up order and appoint the official receiver or liquidator to close down the company. The role of the liquidator is to settle any legal disputes, sell the company’s assets and use the proceeds to settle its debts once the costs and expenses of the liquidation have been deducted. If the assets of the company are significant, a private licensed insolvency practitioner may be engaged to replace the official receiver as liquidator.
The liquidator also has a duty to investigate the directors’ conduct and the company’s financial affairs to discover why the company failed. To conduct this investigation, the liquidator will focus largely on the period immediately before the company became insolvent.
If you have been threatened with or served a winding up petition and need guidance on the process to save your business, please call 08000 746 757 or email [email protected] for free and confidential advice from one of our professional advisers.