Insolvency Act · 2022 Revised Edition · Chapter VI
100. Meaning of “inability to pay debts”
Official textFrom Attorney General's Chambers, unchanged
A company is deemed unable to pay its debts if —
company
“company” means a company incorporated or registered under the Companies Act;
a creditor (by assignment or otherwise) to whom the company is indebted in a sum exceeding $10,000 then due has served on the company, by leaving it at the company’s registered office, a written demand (in the prescribed form) requiring the company to pay the sum so due and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor;
execution or other process issued on a judgment, decree or order of any Court in favour of a creditor of the company is returned unsatisfied in whole or in part; or
it is proved to the satisfaction of the Court that the company is unable to pay its debts.
Insolvency 90
The money sum for the time being specified in subsection (1)(a)
is subject to increase or reduction by an order under section 236.
For the purposes of subsection (1)(c), in determining whether a company is unable to pay its debts, the Court shall take into account its contingent and prospective liabilities.
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
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