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.