Compulsory winding up

How compulsory winding up works

Compulsory winding up begins with an application to the General Division of the High Court, usually by an unpaid creditor. Under section 125 of the IRDA a company is presumed unable to pay its debts if it ignores a statutory demand for more than S$15,000 for three weeks, or if a judgment against it goes unsatisfied. Each application carries an HC/CWU case number and must be advertised in the Gazette before the hearing.

If the court makes a winding-up order, control of the company passes to a liquidator — either a licensed insolvency practitioner nominated by the applicant or, where none is appointed, the Official Receiver at the Ministry of Law's Insolvency & Public Trustee's Office. Directors' powers end and legal actions against the company are stayed.

Most frequent office-holders on this route: BDO Advisory (31), Kroll (4), Acutus Advisory (2), Forvis Mazars (2), Mann & Associates (2).