Should I Respond to a Petition to Liquidate?

 

This is the second step toward liquidation.  Where a statutory demand by a creditor (including Inland Revenue) is neither disputed or paid by the debtor within the requisite period of 15 working days, the creditor may petition to Court to place the debtor company into liquidation.

 

The petitioning creditor must however first serve at the registered office of the debtor company a notice of its petition to the Court to liquidate the company. 

 

This is a crucial point for the company.  Unless within 10 working days of service of the notice of intent to petition, the shareholders of the company appoint a liquidator, no liquidator can be validly appointed until the Court hears the petitioning creditors request to appoint its chosen liquidator.