Purpose of advertising in the London Gazette
The main purpose of advertising the winding-up petition in the London Gazette is to provide public notice of the petition. This notice serves as a formal announcement to the public and other interested parties, including other creditors and banks, that a winding-up petition has been presented against the debtor company. The advertisement helps ensure transparency and allows any interested parties to be aware of the company’s financial situation and the potential winding-up proceedings.
It is also a requirement if you ultimately want to wind up the company at court.
Timing of the Advert
If the winding up petition debt remains unpaid or undisputed, then after 7 business days has elapsed from the date of service, the petitioner can advertise the winding up petition in the London Gazette.
What is the London Gazette?
The London Gazette is a trade magazine which publishes many different types of company and individual notices such as
- bankruptcy petition notices;
- company voluntary arrangements notices;
- corporate insolvency notices; and
- winding up petition notices.
The London Gazette is one of the most important journal records published in the country and one which contains certain statutory notices. It is the oldest surviving English newspaper and was first published on 7 November 1665.
The London Gazette is both a hard copy and on-line publication. In terms of insolvency related matters, different parties can advertise different types of corporate insolvency notices in the Gazette. This is done for a variety of reasons but in terms of a winding up petition it is due to the requirement that in order to obtain a winding up order, the winding up petition notice must first be advertised in the London Gazette.
The reason for placing an advert notice in the London Gazette is to allow other company creditors to be made aware of the existence of the winding up petition. Those creditors may then support the winding up petition with their own debt by sending what is called a notice of support.
Without advertising the winding up petition properly in the London Gazette it is not possible to wind up a company. The court simply won’t grant a winding up order.
Importance of getting the advertisement right
This process is also important to get right for various reasons.
- a wrongly drafted advert can have very serious consequences as the petition, once in the London Gazette becomes public knowledge and will be picked up by credit reference agencies, banks and trade suppliers
- any mistakes in the advert could have important ramifications; wrongly advertising the winding up petition can have drastic consequences and hold the petitioner open to a claim in damages.
Timing of the Advert
The advertisement of a notice in the London Gazette must be published within a specified timeframe after the petition is issued. This timeframe is governed by Rule 7.16 of the Insolvency (England and Wales) Rules 2016.
Consequences of Advertisement
Advertisement of a winding up petition in the London Gazette can be very serious for a company. It is best avoided at all costs. Our team can help you achieve this. But even if the petition is advertised, there are still things which can be done to help.
A notice of a winding up order in the Gazette can be bad news for a company.
But if this happens to you, we can still assist and help you avoid the worst consequences.
Contact us as a matter of urgency and we can still try and have the petition reversed or negotiate a settlement of the claim.
You might also want to apply for a validation order to help you continue to trade whilst the petition debt is sorted out. This will also minimise the risk of personal claims against you by the liquidator or director disqualification proceedings later on if the company is still wound up.
Unadvertised winding up petitions
An unadvertised winding up petition is one which hasnt formally been advertised in the London Gazette. However, as soon as petitions are issued at the High Court there is a danger that they might become public knowledge through other means – so it is vital to take quick action to prevent serious damage to a business. We can help.
Until a winding up petition has been advertised in the London Gazette, the winding up petition is deemed “unadvertised”. Whilst it is still possible that it may come public knowledge through other means (for example there are credit reference agencies that go down to court and leaf through the public records) an unadvertised winding up petition is one which is not formally advertised in the London Gazette.
The Rules in Full for advertising
The relevant section of the Insolvency Rules relating to winding up advertisement are set out in Insolvency Rule Rule 7.10
- Unless the court otherwise directs, the petitioner must give notice of the petition.
- The notice must state—
- (a) that a petition has been presented for the winding up of the company;
- (b) in the case of an overseas company, the address at which service of the petition was effected;
- (c) the name and address of the petitioner;
- (d) the date on which the petition was presented;
- (e) the venue fixed for the hearing of the petition;
- (f) the name and address of the petitioner’s solicitor (if any); and
- (g) that any person intending to appear at the hearing (whether to support or oppose the petition) must give notice of that intention in accordance with rule 7.14.
- The notice must be gazetted
- The notice must be made to appear—
- (a) if the petitioner is the company itself, not less than seven business days before the day appointed for the hearing; and
- (b) otherwise, not less than seven business days after service of the petition on the company, nor less than seven business days before the day appointed for the hearing.
- The court may dismiss the petition if notice of it is not given in accordance with this rule.
Other types of corporate notice in the London Gazette
Other types of London Gazette notices which can be advertised in respect of corporate insolvency include
- administration notices;
- company voluntary liquidation notices;
- insolvency practitioner applications;
- notices relating to liquidation by the court;
- members voluntary liquidations;
- moratoria;
- notice of dividends;
- other corporate insolvency notices;
- notices relating to territories and cross-border insolvencies;
- notices relating to reuse of prohibited names; and
- receivership notices.
Other types of personal notice
In respect of personal insolvency, the London Gazette can be used for the different types of personal notices including
- administration orders;
- amendment of title proceedings;
- annulment or rescission;
- appointment and release of trustees;
- bankruptcy orders;
- discharge from bankruptcy;
- final meetings;
- meeting of creditors;
- notices of dividends;
- notices to creditors;
- public examinations;
- recall of sequestrations;
- statutory demands;
- substitution service of petitions; and
- trust deeds
It is important that the adverts if placed in the London Gazette are done properly. At Francis Wilks & Jones we can help you with this process.
