WINDING UP

22%

at the registered office of the company, a demand
under his hand requiring the company to pay the
sum so due, and the company has for three weeks
thereafter neglected to pay the sum, or to secure
or compound for it to the reasonable satisfaction
of the creditor; or

if, in England or Northern Ireland, execution or other
process issued on a judgment decree or order of any
Court in favour of a creditor of the company is returned
unsatisfied in whole or in part; or

(iii) if, in Scotland, the inducie of a charge for payment

on an extract decree, or an extract registered bond,
or an extract registered protest have expired without
payment being made; or

if it is proved to the satisfaction of the Court that the
company is unable to pay its debts, and, in determining
whether a company is unable to pay its debts, the
Court shall take into account the contingent and
prospective liabilities of the company.

A petition may, subject to certain restrictions (see s. 170),
be presented by the company itself, by one or more creditors,
or by one or more shareholders, or by all or any of those
parties, together or separately, or if the company is already
being wound up voluntarily by the Official Receiver. If the
cround of the petition is default in delivering the statutory
report to the Registrar, or holding the statutory meeting, the
Court may direct the default to be made good instead of
making a winding-up order [s. 171 (2)]. Upon an order for
winding up being made, the proceedings in the liquidation
are conducted temporarily by the Official Receiver, as pro-
visional liquidator, and subsequently by one or more liquida-
tors appointed by the Court, or if no liquidator is so appointed,
by the Official Receiver as liquidator [s. 185] a copy of
the winding-up order must be sent forthwith to the Registrar
's. 176]. A corporation cannot be appointed liquidato~
's. 2781.

The commencement of the winding up (a date of con-
siderable importance) is deemed to be (1) if the company is
not already in voluntary liquidation, the date of the presen-
tation of the petition [s. 175 (2)], and (2) if it is already in
voluntary liquidation, the date of the passing of the resolution
for winding up, the order being thus retrospective. Under the
Act of 1908, the date of presentation of the petition was always
the commencement of the winding up, and this fact had
sometimes unfortunate consequences where compulsory

Presentation
of Petition.

Commence-
ment of
Winding up.