Insolvency Act · s 196

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s 196Inability to pay debts: other cases

(1)

An unregistered company is deemed (for purposes of section 193) unable to pay its debts, if —

(a)

execution or other process issued on a judgment, decree or order obtained in any Court in favour of a creditor against the company, or any member of it as such, or any person authorised to be sued as nominal defendant on behalf of the company, is returned unsatisfied; or

(b)

it is otherwise proved to the satisfaction of the Court that the company is unable to pay its debts as they fall due.

(2)

An unregistered company is also deemed unable to pay its debts if it is proved to the satisfaction of the Court that the value of the company’s assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.