WINDING UP AND DISSOLUTION OF A COMPANY
Creditors typically present a petition seeking a winding up on the first ground whereas minority shareholders typically seek a winding up on the second ground (see section 14.6.1).
16.2.3 Insolvent winding up The focus of this chapter is insolvent winding up, which can be either voluntary or compulsory. A company is insolvent when it is unable to pay its debts. In these circumstances either the company itself passes a special resolution to commence a creditors’ voluntary winding up or a winding-up petition is presented to the court, most commonly by a creditor who is owed £750 or more and has served an unpaid statutory demand on the company (s 123(1)(a)), or a creditor who has secured a judgment for any sum owed to him and execution of that judgment has failed (s 123(1)(b)).