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Winding-up & Bankruptcy
Is your company on the brink of insolvency? Are you a creditor seeking to "wind-up" a company?
"Winding-up" is a legal procedure to dissolve a company. Creditors may issue a statutory demand to the debtor company demanding repayment within 21 days if the company owes debt over HK$10,000. If the company is still unable to repay, the creditor may make a winding-up application. Once the company is "wound-up", the liquidator will sell off the company's assets to repay the company's creditors.,
Companies may also be wound-up voluntarily by its shareholders, or it may be wound-up compulsorily by a Court Order.
According to sections 177(1) and 178(1) of the Companies (Winding-Up and Miscellaneous Provisions) Ordinance (Cap. 32), a company may be wound up by the Court in the following circumstances:
the company has by special resolution resolved that the company be wound up by the court;
the company does not commence its business within a year from its incorporation, or suspends its business for a whole year;
the company has no shareholders;
the company is unable to pay a debt of HK$10,000 or above;
an event occurs under which the company's articles of association mandates the company must be dissolved
the court is of opinion that it is just and equitable that the company should be wound up.
See other legal services:
"Bankruptcy Order" is declaration by the Court that the bankrupt person is unable to repay debts to his creditors. Creditors may issue a statutory demand to a debtor to demand for repayment of the debt within 21 days if the debtor owes debt over HK$10,000. If the debtor is still unable to repay, the creditor may make an application for a Bankruptcy Order. The assets of the bankrupt person will be sold off and distributed to his creditors.
An application for a bankruptcy order may be made by a creditor or by the debtor himself. According to section 6 of the Bankruptcy Ordinance (CAP. 6), a creditor may present a bankruptcy petition to court if the amount of debt is equal to HK$10,000 or more.
Common legal services include:
Due diligence on the assets of the debtor company or person
Drafting and serving Statutory Demands
Drafting and serving winding-up or bankruptcy petitions and supporting affirmations
Liaising with the Official Receiver
Applying for Registrar's Certificate
Drafting and arranging for advertisements in the Government Gazette and local newspapers
Appearing and making submissions for you at Court hearings
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