Insolvency Act · 2022 Revised Edition · Part · Winding Up of Unregistered Companies
195. Inability to pay debts: debt remaining unsatisfied after action brought
Official textFrom Attorney General's Chambers, unchanged
An unregistered company is deemed (for the purposes of section 193)
unregistered company
“unregistered company” includes any partnership, association and company except — (a) a company incorporated or registered under the Companies Act; or (b) a partnership, an association or a company which consists of less than 8 members and is not a foreign partnership, association or company.
unable to pay its debts if an action or other proceeding has been instituted against any member for any debt or demand due, or claimed to be due, from the company, or from him in his character of member, and —
company
“company” means a company incorporated or registered under the Companies Act;
notice in writing of the institution of the action or proceeding has been served on the company by leaving it at the
Insolvency principal place of business of the company (or by delivering it to the secretary, or some director, judicial manager or principal officer of the company, or by otherwise serving it in such manner as the Court may approve or direct); and
insolvency
“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
the company has not within 3 weeks after service of the notice paid, secured or compounded for the debt or demand, or procured the action or proceeding to be stayed or sisted, or indemnified the defendant or defender to his reasonable satisfaction against the action or proceeding, and against all costs, damages and expenses to be incurred by him because of it.
Terms defined in this Act
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;
unregistered company
Defined · s 192“unregistered company” includes any partnership, association and company except — (a) a company incorporated or registered under the Companies Act; or (b) a partnership, an association or a company which consists of less than 8 members and is not a foreign partnership, association or company.