If a company owes you money and has failed, refused (do not want to) or neglected (forgot) to pay the debt, you may apply to wind it up by presenting a petition to court pursuant to section 218(1)(e) of the Act.
Related article “How to Get Paid By Winding Up Your Debtors!”
A winding-up petition of this type is usually presented by a creditor on the grounds that the company cannot pay its debts and this has to be proven to the satisfaction court.
How do I prove to the court that the company cannot pay its debts?
To start the process of winding up the lawyers will serve onto the debtors, a notice pursuant to section 218 of the Companies Act 1965 for the debtors to pay the debts within 21 days.
If the debtors fail to pay, a winding up Petition will be filed in court.
Freezing the Bank Account
After the winding up Petition is filed, we may apply to the court for the bank accounts of the debtors be frozen. The reasons for doing so is because many debtors will try to ’empty’ their bank accounts by moving the funds in their bank accounts once they know that their company is going to be wound up.
Hearing of the Petition
The Winding Up Petition will usually be fixed to be heard in Court within two months of filing/ commencement as we have mentioned earlier.
“The Chinese Version is a translation to the best efforts and if there is a conflict between the translation and the English version, please refer to the English version.”