If your company has received a winding-up order, it’s a critical situation, but not necessarily the end of the road. A winding-up order signifies that a court has ordered your company to be liquidated, often due to unpaid debts. However, in some cases, you can apply to have the order canceled (or ‘rescinded’), giving your business a second chance. This article explains everything you need to know about canceling a winding-up order, using simple and user-focused language to guide you through this complex process.
What Is a Winding-Up Order?
A winding-up order is a court decision to close down a company and liquidate its assets to repay creditors. It is typically issued after a winding-up petition has been submitted, often by a creditor who claims your business owes them money. Once the order is made, the company’s control is handed over to an official receiver or insolvency practitioner.
However, not all winding-up orders are irreversible. Under specific circumstances, you can apply to have the order rescinded.
Why Apply to Cancel a Winding-Up Order?
You might want to cancel a winding-up order if:
- Your company can pay its debts: Perhaps the financial situation has improved, or funds have become available since the order was issued.
- You were unable to attend the original hearing: Missing a hearing doesn’t automatically mean your case is closed.
- The petition was issued unfairly: For example, if the creditor acted improperly or the debt is disputed.
The key to success lies in acting quickly and providing strong evidence.
How to Apply to Rescind a Winding-Up Order
Step 1: Act Fast
Timing is crucial. You must apply to the court within five working days from the date the winding-up order was made. Delaying beyond this window could significantly harm your chances.
Step 2: Gather the Necessary Documents
You’ll need:
- Form IAA – This is the formal application to rescind the winding-up order.
- A Witness Statement – Include detailed information about your company’s financial position, assets, debts, and reasons for requesting the cancellation. Be honest and thorough; this is your opportunity to explain your case clearly.
Step 3: Submit the Documents to the Court
The submission process depends on the court that issued the winding-up order:
- Online Submission: If your case is being handled by courts such as the Admiralty and Commercial Court, Chancery Division, Companies Court, or High Court (including the Bankruptcy Court), you can submit your application online.
- By Post: If another court issued the order, you must send the documents by post to the court’s address.
Step 4: Pay the Fee
The cost of applying to rescind a winding-up order depends on the court:
- £155 for applications submitted to the Companies Court or a district registry.
- Fees vary for county courts, so it’s best to check with the court directly.
After You Apply
Once your application is submitted, the court will review it promptly. Here’s what to expect next:
Hearing Date
You’ll usually receive a hearing date within one or two weeks. This is your opportunity to present your case and explain why the winding-up order should be canceled.
Serving the Application
You must deliver (‘serve’) a copy of your application to:
- The person or entity that submitted the winding-up petition (known as the respondent).
- The official receiver handling your case.
Delivery options include:
- In Person: Take the document to their known address(es).
- Process Server: A solicitor or specialist service can arrange this for you.
- Registered Post: If personal delivery isn’t possible, use registered post or drop the documents through a letterbox.
At the Hearing
The hearing is a pivotal moment. You and the respondent will present your arguments to a registrar or district judge. Here’s how to prepare:
- Be Clear and Concise: Explain why you believe the winding-up order should be canceled. Provide evidence of your company’s ability to pay debts or demonstrate why the original petition was flawed.
- Bring Supporting Documents: Include bank statements, payment plans, or other financial records that support your case.
The Outcome
After hearing both sides, the registrar or judge will either:
- Make a Decision: If the evidence is clear, they may decide immediately. You’ll receive a written copy of the decision.
- Request More Evidence: In some cases, they may schedule a follow-up hearing if further evidence is needed.
What If You Disagree With the Decision?
If the court denies your application and you believe the decision was incorrect, you may appeal to the Chancery Division of the High Court. This process can be complex, so consider seeking legal advice if you decide to pursue an appeal.
Practical Tips for Success
- Act Quickly: Time is of the essence. Missing deadlines can severely impact your case.
- Seek Professional Advice: A solicitor with expertise in insolvency can guide you through the process, ensuring you meet all legal requirements.
- Communicate with Creditors: If possible, work out a payment plan or resolution with the creditor who issued the petition. A cooperative approach can strengthen your case.
- Be Transparent: Provide accurate and complete information. Misleading the court can have serious consequences.
Frequently Asked Questions
If you don’t act, the liquidation process will continue. Your company’s assets will be sold to repay creditors, and the business will cease to exist.
It’s unlikely. Once a winding-up order is issued, court intervention is typically required to reverse it.
From application to hearing, the process usually takes a few weeks, depending on court availability and case complexity.
You can apply yourself, but legal representation is highly recommended, especially for complex cases.
Conclusion
A winding-up order can feel like a devastating blow to your company, but it’s not necessarily the end. By acting quickly, preparing a strong case, and following the court’s procedures, you may be able to cancel the order and give your business a fresh start.
Whether it’s paying off debts, resolving disputes, or presenting compelling evidence, every step you take could be a step toward saving your company. For the best outcome, don’t hesitate to seek professional advice and act with determination.
If your company is facing a winding-up order, don’t navigate this challenging process alone. Brayan & Spencer Associates specialize in tax, accounting, and insolvency services, offering expert guidance tailored to your situation.
team can:
- Assist with preparing Form IAA and witness statements.
- Advise on the strongest case to present in court.
- Negotiate with creditors to find viable solutions.
Time is crucial, and every moment counts. Contact today to take the first step toward saving your business. Let’s work together to turn this around.
📞 Call us now at 0207 183 5956
📧 Email us at info@bsassociate.co.uk
Tags : Rescinding/Setting aside a Winding Up Order, Cancelling a company winding-up order, How to Stop a Winding Up Petition, Withdrawing a Winding-up Order