Insolvency: Payments after the presentation of a Winding-Up Petition

Submitted by Rocco Limongelli on Fri, 05/22/2020 - 10:00
Insolvent

When a winding-up petition is presented, suppliers and business owners must seek immediate legal advice, as a lot will change in the day to day running of the company.

Under s. 127(1) of the Insolvency Act 1986 (IA 86), it is provided that “… any disposition of the company’s property, and any transfer of shares, or alteration in the status of the company’s members, made after the commencement of the winding up is, unless the court otherwise orders, void.”

Furthermore, in order to leave no doubt, s. 129(2) provides that the winding up of a company “… is deemed to commence at the time of the presentation of the petition for winding up”. This means, that once the court simply stamps the petition form (Comp1), the winding up is deemed to have started.

Therefore, if your business receives any payments from a company after a winding up petition has been presented to the latter, the Insolvency Practitioners will be able to recover the monies directly from your business, regardless of whether you have already provided a service or delivered goods.

If your business is in financial hardship or has to recover a debt from a company in the UK or Europe, Optimal Solicitors has experienced lawyers that can help you.

 

Please contact Rocco Limongelli on 0161 250 7771 , who will be able to assist you.

Author

Rocco Limongelli
Rocco Limongelli
Corporate and Commercial Solicitor at Optimal Solicitors Rocco joined Optimal Solicitors in April 2020, setting up the Corporate and Commercial department. He practices in both corporate and commercial law, and has particular experience in the fintech, technology and fashion sectors. Rocco has also particular expertise in dealing with cross-border matters, having assisted clients from all over Europe. He has a commercially aware approach when advising clients. He understands how to work with highly driven and business minded clients, and getting deals done. He also advises on corporate transactions, including mergers and acquisitions, joint ventures, corporate re-organisations and shareholders disputes. Rocco also advises on a wide range of commercial and contractual arrangements, including drafting of terms and conditions, GDPR compliance, outsourcing agreements and SaaS agreements. Rocco has the skills to help you set up, run and expand your business worldwide.
 
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