Insolvency Act · 2022 Revised Edition · Part · Winding Up of Unregistered Companies
196. Inability to pay debts: other cases
Official textFrom Attorney General's Chambers, unchanged
An unregistered company is deemed (for purposes of section 193) unable to pay its debts, if —
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.
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
it is otherwise proved to the satisfaction of the Court that the company is unable to pay its debts as they fall due.
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.
company
“company” means a company incorporated or registered under the Companies Act;
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;
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.