Effect on proceedings against a company being wound up and after a winding-up order is made
Produced in partnership with Eleanor Holland of 4 Stone Buildings and Karl Anderson of 4 Stone Buildings

The following Restructuring & Insolvency practice note produced in partnership with Eleanor Holland of 4 Stone Buildings and Karl Anderson of 4 Stone Buildings provides comprehensive and up to date legal information covering:

  • Effect on proceedings against a company being wound up and after a winding-up order is made
  • Presentation of a winding-up petition
  • After the making of a winding-up order
  • Creditors' voluntary winding-up

Effect on proceedings against a company being wound up and after a winding-up order is made

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (June 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

This Practice Note sets out guidance as to what happens when:

  1. proceedings have been commenced against a company and a winding-up petition is presented against the company, or

  2. the company's members pass a resolution to wind it up through a creditors' voluntary liquidation (CVL)

Any formal insolvency proceeding is a collective remedy. This means that all unsecured creditors rank equally. A judgment obtained in any proceedings against the company does not create any form of priority over other creditors in the same class. Nor is a judgment any form of security. It follows that the decision whether to continue proceedings against a company which is being wound up is primarily a commercial one rather than a legal one. There is frequently no commercial advantage in incurring

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