After a winding up order is made, a liquidator is appointed to try and get money back into the company and also investigate the conduct of the directors - and bring personal claims if appropriate. We act for directors and liquidators and have fantastic skills in this area. Let us help you.
There are 2 elements to answering the question what happens after winding up petition?
The first key issue to consider
The first issue relates to what happens after service of the winding up petition.
- if the winding up petition has just been issued by the winding up court and served on the debtor, the debtor has 7 business days in which to resolve the winding up petition;
- failing which, the petitioner can advertise the winding up petition in the London Gazette.
Therefore, the debtor can either pay the debt, reach a payment instalment plan or dispute the winding up petition. Failure to do so within the 7 business day period can lead to significant difficulties for the debtor if the petitioner then advertises the winding up petition in the London Gazette. London Gazette winding up petition notices can be very damaging to a business.
The second key issue to consider
If however the winding up order is made by the winding up petition court, the company is then placed into a formal liquidation. This means that a liquidator will take over responsibility for the affairs of the company and his duty is to sell as many assets of the company as possible to see whether there are sufficient funds to pay back some or all of the creditors of the company. In reality, there very rarely are.
However, a liquidator also has other duties and these are
- to investigate the affairs of the company;
- to investigate how it was managed and also whether there are any potential claims to be made against the former directors of the company on a personal basis.
Therefore, if you are a director of a company which has received a winding up order and has been placed into liquidation, it is likely you are going to be quizzed by a liquidator and may even face personal claims against you.
If you have an enquiry about what happens after a winding up petition, we are the expert leading firm of winding up order solicitors and can help you with your enquiry.