Good day! May you, please, assist with the following question: Which of the following persons or bodies can petition to the court for a compulsory
liquidation?
A The company itself
B Any creditor
C Any director .
The answer in the Kaplan exam kit is A. The company itself. I thought a company can petition for voluntary, not compulsory winding up. I am of the view that directors have `no inherent right to petition a court for the company's compulsory liquidation, although they can arrange a meeting with members or creditors and suggest it. Creditors meeting certain criteria such being owed at least £750 can petition a court for the compulsory liquidation of a company. So I am wondering if the question should have asked for those who CANNOT petition a company for compulsory liquidation.
Kindly assist.
Regards,
Adam
Ask the Tutor ACCA LW
Liquidations
2y ago#1The first of the limited grounds for a Court to grant a compulsory liquidation order under Section 122 of the Insolvency Act 1986 is where (and I quote) ...
122 Circumstances in which company may be wound up by the court.
(1)A company may be wound up by the court if—
(a) the company has by special resolution resolved that the company be
wound up by the court
I believe that that answers you
OK?
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