Section 573 - Petitions For Winding Up And Its Effects

(1) An application to the court for the winding up of a company shall be by petition presented subject to the provisions of this section, by -

(a) the company or a director;

(b) a creditor, including a contingent or prospective creditor of the company;

(c) the official receiver;

(d) a contributory;

(e) a trustee in bankruptcy to, or a personal representative of, a creditor or contributory;

(f) the Commission under section 366 of this Act;

(g) a receiver, if authorised by the instrument under which he was appointed; or

(h) by all or any of those parties, together or separately.

(2) Notwithstanding anything in subsection (1) -

(a) a contributory is not entitled to present a petition for winding up a company unless the -

(i) number of members is reduced below two in the case of companies with more than one shareholder, or

(ii) shares in respect of which he is contributory or some of them, were originally allotted to him or have been held by him, and registered in his name, for at least six months during the 18 months before the commencement of the winding up, or have devolved on him through the death of a former holder;

(b) a winding-up petition shall not, if the ground of the petition is default in delivering the statutory report to the Commission or in holding the statutory meeting, be presented by any person except a shareholder, or before the expiration of 14 days after the last day on which the meeting should have been held; and

(c) the Court shall not hear a winding-up petition presented by a contingent or prospective creditor until sufficient security for costs has been given, and a prima facie case for winding up has been established to its satisfaction.

(3) Where a company is being wound up voluntarily or subject to supervision, a winding-up petition may be presented by the official receiver attached to the Court, as well as by any other person authorised under the other provisions of this section, but the Court shall not make a winding-up order on any such petition unless it is satisfied that the voluntary winding up or winding up subject to supervision cannot be continued with due regard to the interests of the creditors or contributories.

(4) A contributory is entitled to present a winding-up petition notwithstanding that there may not be assets available on the winding up for distribution to contributories.

574. (1) On hearing a winding-up petition, the Court may dismiss it, adjourn the hearing conditionally or unconditionally or make any interim order, or any other order that it deems fit, but the Court shall not refuse to make a winding-up order on the ground only that the assets of the company have been mortgaged to an amount equal to or in excess of those assets, or that the company has no assets.

(2) Unless it appears to the Court that some other remedies are available and that the petitioners are acting unreasonably in seeking a winding-up order instead of pursuing those remedies, the Court, on hearing a petition by contributory members of a company for relief by winding up on the ground that it would be just and equitable so to do, shall make the order as prayed if it is of the opinion that the petitioners are entitled to the relief sought.

(3) Where a petition is presented on the ground of default in delivering the statutory report to the Commission or in holding the statutory meeting, the Court, instead of making a winding-up order, may direct the delivery of the statutory report or the holding of a meeting, and order the costs to be paid by the persons who, in the opinion of the Court, are responsible for the default.