Companies Act 1993

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
  • Warning: Some amendments have not yet been incorporated
  • Section 405(7) and Schedule 15 Part 1 paragraphs (h), (p), and (q): editorial changes made, on 19 January 2023, under sections 86(1) and 87(l)(i), (ii), (iii), and (iv) of the Legislation Act 2019 (2019 No 58).

Company unable to pay its debts

287 Meaning of inability to pay debts

Unless the contrary is proved, and subject to section 288, a company is presumed to be unable to pay its debts if—

(a)

the company has failed to comply with a statutory demand; or

(b)

execution issued against the company in respect of a judgment debt has been returned unsatisfied in whole or in part; or

(c)

a person entitled to a charge over all or substantially all of the property of the company has appointed a receiver under the instrument creating the charge; or

(d)

a compromise between a company and its creditors has been put to a vote in accordance with Part 14 but has not been approved.