Court Liquidations

Following the passing of the Companies Act 2014 it is not expected that there will be any more Court liquidations as such.  Court liquidations used to be also known as are also known as “official liquidations” or “winding up by the court”. They were also sometimes known as compulsory liquidations.

The liquidation itself is commenced by Order of the court on foot of a petition. Once appointed, the liquidator will carry out the liquidation as a creditors voluntary liquidation.

Who May Present a Petition?

The following parties are entitled to bring a petition to wind up a company:

  • A creditor (The minimum debt must be €10,000 or €20,000 if there or 2 or more creditors.)
  • A contingent creditor
  • The company
  • Shareholder
  • The Minister
  • The Registrar of Companies
  • ODCE

In practice, the majority of winding up petitions are presented by creditors.

Grounds for The Presentation of a Petition

Grounds for presenting a petition to have a company wound up are as follows:

  • Where the company has “by special resolution resolved that the company be wound up by the court”.
  • Where the company “does not commence its business within a year from its incorporation or suspends its business for a whole year”.
  • Where the company is unable to pay its debts.
  • Where the court is of the opinion that it is “just and equitable to wind up the company”.
  • Where “oppression” has been proved to the satisfaction of the court.
  • Id the court is satisfied on the petition of ODCE that it is in the public interest to wind up the company.

How Can We Help?

We can act as the nominated liquidator.

For further information please contact Jim Stafford or Tom Murray on 01 661 4066 or jim.stafford@frielstafford.ie or tom.murray@frielstafford.ie