Petition to Wind up A Company query

aldeniro

If there is a judgement against a company and they are refusing to pay, is petitioning to wind up the company as a means of enforcement of the judgement a valid and effective direction to take with regard to getting the company to pay what they are legally obliged to pay via judgement to do so?

Does anyone have an idea of timelines or procedures to do so?

234

aldeniro wrote: »

If there is a judgement against a company and they are refusing to pay, is petitioning to wind up the company as a means of enforcement of the judgement a valid and effective direction to take with regard to getting the company to pay what they are legally obliged to pay via judgement to do so?

Does anyone have an idea of timelines or procedures to do so?

Keep in mind that you claim, unless secured, would only rank pari passu, so it might be more effective to threaten winding-up with a view to getting paid in full.

You would need to talk to a solicitor anyway, so get some proper advice.

aldeniro

234 wrote: »

Keep in mind that you claim, unless secured, would only rank pari passu, so it might be more effective to threaten winding-up with a view to getting paid in full.

You would need to talk to a solicitor anyway, so get some proper advice.

Hi,
Thanks, primiarily the use of this method to enforce the judgement (judgement is 100% and unappealable) is strictly to get them to cop on and honor the judgement. Considering size of the respondant, its unlikely this would follow out and actually dissolve the company in question.

Ken.

Could you not get the sheriff to enforce the judgement. Have a read of this.
http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/enforcement_of_judgments.html

aldeniro

ken wrote: »

Could you not get the sheriff to enforce the judgement. Have a read of this.
http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/enforcement_of_judgments.html

Hi,
Thanks for that - ya looks like a route also. What i need to decide on is the most effective, efficient way of proceeding....currently i believe to be Petition to Wind Up?

Mr. Incognito

It's known as a S 214 Petition and should not be used as a means of debt collection.

Order 74 of the Courts Rules sets out the procedures.

Easier to enforce the judgement.

234

aldeniro wrote: »

Hi,
Thanks, primiarily the use of this method to enforce the judgement (judgement is 100% and unappealable)

Still, if you succeed in having the company put into liquidation then, court order or not, you will only rank pari passu with other unsecured creditors. In that respect it could be an own-goal if you only get 50% of the value of the debt.

aldeniro

"214.—A company shall be deemed to be unable to pay its debts—
(a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding £50 then due, has served on the company, by leaving it at the registered office of the company, a demand in writing requiring the company to pay the sum so due, and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor; or
(b) if execution or other process issued on a judgment, decree or order of any court in favour of a creditor of the company is returned unsatisfied in whole or in part; or
(c) if it is proved to the satisfaction of the court that the company is unable to pay its debts, and in determining whether a company is unable to pay its debts, the court shall take into account the contingent and prospective liabilities of the company.
"

If you give the company 21 days to pay, the warning is then on to Wind up petition??

A few small things:

1. Speak to a solicitor if you want to enforce a judgment.

2. Using a winding up petition as a means of debt enforcement is an abuse of process. That being said it's often used that way

3. Speak to a solicitor if you want to bring a winding up petition.

4. There are many procedural requirements involved in presenting a winding up petition as well as costs of doing so. It can have serious effects for the company involved AND the petitioner's position.

5. STOP SEEKING LEGAL ADVICE ON THE INTERNET AND SPEAK TO A SOLICITOR.


PS: You should consider speaking to a solicitor

aldeniro

Deleted User wrote: »

A few small things:

1. Speak to a solicitor if you want to enforce a judgment.

2. Using a winding up petition as a means of debt enforcement is an abuse of process. That being said it's often used that way

3. Speak to a solicitor if you want to bring a winding up petition.

4. There are many procedural requirements involved in presenting a winding up petition as well as costs of doing so. It can have serious effects for the company involved AND the petitioner's position.

5. STOP SEEKING LEGAL ADVICE ON THE INTERNET AND SPEAK TO A SOLICITOR.


PS: You should consider speaking to a solicitor

Kayroo - "A few small things"?? - Personally did not find any of them useful to my initial query or helpful (bar maybe points 2 and 4 which I read in detail).

For the record......... I HAVE SPOKEN TO A SOLICITOR and have been given 2 directions to take, one of them is Winding Up. My initial query was a general one to the users on this legal forum on Boards to get a few differing opinions!. It was NOT meant to be viewed as "...SEEKING LEGAL ADVICE ON THE INTERNET"!

Also your P.S : "PS: You should consider speaking to a solicitor " - was this meant to be humerous as you have already detailed this suggestion in your points 1 & 2 above?

234

OP, the point is that when considering which of the two options to take you should be asking a solicitor which he would advise. That's what you pay him to do.

Asking advice on how to run a business on the internet is never a good idea. While there are some well informed people on this forum, there are a lot of random idiots too. Just have a look at the "I broke my hand, an I get compensation" thread to see the possible people who could be advising you on such a decision.

aldeniro

234 wrote: »

OP, the point is that when considering which of the two options to take you should be asking a solicitor which he would advise. That's what you pay him to do.

Asking advice on how to run a business on the internet is never a good idea. While there are some well informed people on this forum, there are a lot of random idiots too. Just have a look at the "I broke my hand, an I get compensation" thread to see the possible people who could be advising you on such a decision.

Fair points 234. Cheers. While I was looking for general comment..... I of course would only act on an actual solicitors advice