Court timetable
The petition, hearing date, service and advertisement position determine the immediate deadlines.
Compulsory liquidation
Prompt advice when a creditor is pursuing winding-up action.
A winding-up petition is a court process that can affect banking, trading and the company's available options. The timetable and legal position should be reviewed immediately.
Before the first call
Act on the document and timetable, not assumptions.
- Keep the petition, statutory demand, court papers and related creditor correspondence together.
- Record the hearing, service and advertisement dates and obtain advice before making significant payments.
- Protect books, records and assets while assessing banking, trading and creditor issues.
When it may apply
Immediate attention is required after a statutory demand or winding-up action is received.
The correct route depends on the full financial and commercial position. These indicators are a starting point, not a substitute for advice.
- A statutory demand has been served
- A creditor has threatened a winding-up petition
- The company has received a filed petition
- A petition has been advertised
- The bank account has been frozen or restricted
- A winding-up hearing is approaching
Points to consider
What the board needs to understand.
We explain both the intended benefit and the practical implications before a decision is made.
Banking
A petition can cause a bank to freeze the company's account and payments may later be challenged as void dispositions.
Debt position
The validity, amount and dispute status of the petition debt require legal review.
Available options
Payment, settlement, adjournment, validation, restructuring, administration or voluntary liquidation may be relevant, depending on timing and facts.
Creditor communication
Engagement must be accurate, realistic and coordinated with legal and insolvency advice.
Director decisions
The board should protect assets, records and creditor interests while avoiding actions that worsen the position.
The process
A clear sequence from advice to implementation.
- 01
Urgent fact check
Confirm the document received, creditor, amount, dates, court details, advertisement status and any dispute.
- 02
Financial assessment
Review available cash, creditor pressure, underlying viability, funding and the outcome the board wants to achieve.
- 03
Legal and insolvency options
Coordinate the court response with any payment, restructuring, administration or liquidation route.
- 04
Implementation
Act within the available timetable and keep decisions, advice and supporting information properly recorded.
Common questions
What directors usually want to know.
Every company is different. These answers provide general guidance only.
Can the company continue using its bank account?
The practical and legal position can change after presentation of a petition. Specific advice should be taken before payments are made.
Can a petition be stopped by paying the creditor?
Payment may not resolve every issue, particularly if other creditors support the petition or the company remains insolvent. Legal advice is required.
What is a validation order?
It is a court order validating particular transactions that might otherwise be void after presentation of a petition. Evidence and legal advice are needed.
Is a CVL still possible?
Possibly, but the petition, creditor position and timing must be addressed. Options can narrow quickly after presentation and advertisement.
A useful first step
Discuss the facts before deciding on a process.
Answer a small number of questions about the pressure facing the company. The initial discussion is free and without obligation. Fees for any formal work are explained before an instruction is accepted.