Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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B. Things you need to note before presenting a winding-up petition

Under sections 177 & 178 of the Companies Ordinance, it is a ground for petition if the company is unable to pay a debt of $10,000 or above (or an amount prescribed by the Financial Secretary of the HKSAR Government in special circumstances).

If it is anticipated that there will be a genuine dispute over the debt (the company is likely to argue, or just denying its liability for the debt), the creditor may sue the company for a judgment instead of presenting a winding-up petition. In other words, the creditor may institute legal proceedings against the company in order to obtain a court judgment to ascertain the company's liability for the debt. If the company still fails to comply with a court judgement to repay the debt, the creditor may then proceed to enforce the judgement by filing a winding-up petition (or inforce it through other legal proceedings).

  1. A brief summary of the procedures for presenting a winding-up petition
  2. What should the petition contain?
  3. I have already obtained a court judgment against a limited company, but the company still refuses to pay. Should I present a winding-up petition?
  4. Apart from a creditor, who else can present a winding-up petition?
  5. I am a director and minority shareholder of a company. The majority shareholders of the company have continued to exclude me from the management of the company. Can I present a winding-up petition?
  6. I just found out that another creditor has already presented a petition against the company. Should I nevertheless present another petition? If not, what are my options?
  7. My company has received a written demand from an alleged creditor requiring us to pay them within 21 days. We strenuously deny that our company is indebted to the alleged creditor. Is there anything our company can do to protect its interest?
  8. We have written to the creditor who served a written demand on us asking him to withdraw the demand but there is no reply from him. 21 days have passed and we fear that a petition may be presented at any moment. What are the company's options?