This is by way of a petition following Form 19 in Schedule 1 of the Insolvency Regulations, 2013. One can petition court to wind up a company if it cannot pay its debts or has failed to honor a statutory demand.
The High court has jurisdiction to hear all Insolvency matters.
Procedure.
Presentation of petition for winding up of company to Court- Form 19 of the Insolvency Regulations supported by an affidavit.
Service of Petition on company, creditors, contributory and Official Receiver.
Public Notice of the petition within 7 days after filing petition- Form 4 of the Insolvency Regulations.
Reply to the petition must be filed within 15 days after service of the petition by affidavit in reply.
Every creditor who wishes to be heard on the petition shall within 5 days after publication of petition give notice to court of the intention to appear and be heard. Notice shall be in Form 5 of the Insolvency Regulations.
Hearing of petition; After expiry of the time of filing the reply to the petition, the petitioner shall take out a hearing notice and serve it on every creditor who gave notice of intention to appear.
After hearing the petition, the court may either make an order for winding up on satisfaction of inability to pay debts, dismiss or adjourn the hearing.
The Court shall appoint the Official Receiver or any other Insolvency Practitioner as provisional liquidator.
The Liquidator shall within 14 days after commencement of liquidation give public notice of commencement of liquidation and call a shareholders meeting.
Within 5 working days give notice of his appointment in gazette and newspaper.
How to petition.
The creditor has to prove that the company has failed to pay its debts.
Fill in the petition form which entails;
The name, address, nature and type of the company.
The consideration for the debt, how it is owed, when the debt was incurred or became due.
Whether the company has failed to comply with a statutory demand.
Whether the statutory demand has not been set aside or there is no application for extension of time.
Whether the company is unable to pay its debts.
Whether the company has been declared insolvent.
Attach an affidavit on the petition sworn by the creditor in the presence of a commissioner of Oaths.
Serve the respondents with the petition.
Give public notice of the petition by putting it in the gazette or a newspaper.
Every other creditor who wishes to be heard has to give notice to the court and to the petitioner.
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