Companies Act 1993

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment

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.