CHAPTER XX
WINDING UP

CoMPANIES may be wound up by three distinct methods.
The winding up may be (1) compulsory, i.e. by the Court;
(2) subject to the supervision of the Court; (3) voluntary.
Of these, by far the commonest is voluntary winding up,
and it is proposed in this chapter to deal mainly with that
method, only mentioning a few salient features of the others.
Before proceeding to consider the law now in force on the
subject, it should be mentioned that by s. 383 of the Act of
1929, the provisions of that Act do not apply to any liquida-
tion which commenced before the 1st November, 1929. As
regards such liquidations the provisions of the Act of 1908 and
the Winding-up Rules, 1909, will remain in force.

By the Court. Compulsory liquidation is brought about by order of the
Court on petition, and is carried out under the direction of
the Court, the sections of the Act exclusively applicable
being ss. 163 to 224. The circumstances in which a com-
pany may be wound up by the Court are enumerated in
s. 168 of the Act as follows: —
(i) If the company has by special resolution resolved
that the company be wound up by the Court;

(ii) if default is made in delivering the statutory report to
the Registrar or in holding the statutory meeting;

(iii) if the company does not commence its business within
a year from its incorporation. or suspends its business
for a whole year;

{iv) if the number of members is reduced, in the case of
a private company, below two, or, in the case of any
other company, below seven;

(v) if the company is unable to pay its debts;

(vi) if the Court is of opinion that it is just and equitable
that the company should be wound up.

And s. 169 provides that a company shall be deemed to be

unable to pay its debts—
(i) If a creditor, by assignment or otherwise, to whom the
company is indebted in a sum exceeding fifty pounds
then due, has served on the company, by leaving it
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