Winding up Commercial Companies in UK business law

‘Winding up’ is a more colloquial term for the liquidation process which a company may go through. Liquidation varies depending on the status of the company i.e. limited company or partnership. There are also several variants of liquidation which include the process of voluntary liquidation and compulsory liquidation.
Compulsory liquidation will often occur in the form of a winding up petition. A winding up petition can be brought against a company, and is a useful tool often employed by business lawyers to threaten payment of an uncontested debt. To apply for a winding up petition the company whom you are seeking the order against must owe you more than £750, and you must be able to demonstrate to the Court that it is uncontested, and that the debtor is unable to repay the debt as it falls due.
If a winding up petition is granted then a liquidator may be appointed who may sell the company’s assets, and once realized, any surplus funds resulting from the sale may be repaid to creditors and shareholders, providing there are sufficient funds. A risk with winding up a company is that there may be numerous secured and unsecured creditors, meaning that an unsecured creditor or shareholder may not receive all/ any of the money owed.
The requirement to successfully demonstrate to the Court that the company is unable to pay its debts, although apparently simple is often more complicated. It is not just an ordinary debt, there must be a statutory demand or a court judgement in place. Once the court receives your petition for winding up the company, they will set a date for a court hearing. If the petition is granted, then the Court will order the winding up of the company. The Court will then appoint an official receiver who will have the responsibility for following the liquidation protocol. The receiver will then begin the process of realizing the company’s assets and generating money which will be used to repay the individual who brought the petition and any other creditors who claim a debt from the company.

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Time to Rise

Experiences, Challenges and Marketing Solutions with: Reza Soheily, Founder and CEO, London Entrepreneurs Network

London Entrepreneurs Network Bio

Reza Bio

Tell us about your entrepreneurial journey: from the start up to now

In 2009, I moved to the UK, speaking no English, and came to study at university. After much hard work and dedication, I almost got a degree. “Almost? What do you mean almost, why didn’t you get a degree?” is probably what you are thinking right now. See, the reason is because I didn’t attend my final exam due to the fact that I had already started my events business. I started running events in 2012 and formed the company in 2013. In the three years since, we have gone from having 1200 members to over 30,000 members become a part of the London Entrepreneurs Network (LEN). What many people do not know, is that prior to LEN, I started a business doing voucher codes, and before I even moved to the UK I ran a jewellery business in Iran.

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3 Benefits of MBJ’s Website as a Service (WaaS)

Creating and running a website yourself is a lot of work. First, there’s hosting. You are going to also need a designer and a copywriter. An SEO expert is crucial if you want to get ranked high in search results. Occasionally, you will need to perform website maintenance. And if you want to learn from your web traffic, hiring someone to make sense of web analytics is just as important. No wonder most companies have dedicated personnel and entire departments for all this.

But, in addition to lengthy development times, a website can be a substantial investment. Agencies charge thousands for even simple websites and freelancers are often unreliable and not transparent about pricing. And both, after handing over the keys, leave clients to fare for themselves. As a consequence, maintaining a website can be a tall order for many companies who have neither the staff nor the budget to do it properly. Yet, going without one and missing out on the thriving online market is not an option. So, what are businesses to do?

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7 Things To Do When Planning A Simpler Site.

We all want an effective website that makes the users lives easy right? Easy to understand and easy and obvious for the user to take the next steps to the conversion you want.

In reality, as business owners we never know what that one thing is we want the user to do.

We throw in all the services we offer, add jazzy over complex images, multiple fonts “Because they look nice” and then wonder why nothing’s happening on our site.

Simple design works every time. No matter if you’re working on your website, email newsletter or print media, simple design is proven to be more visually appealing and creates a better first impression. As you should know by now, first impressions are everything.

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6 reasons why free article submission is worthy

After all changes that search engines have gone through over the past few years, you might think that article submission websites and article marketing are no longer of use. Actually, Google’s Hummingbird algorithm, along with other major search engines, still reward links gained from article directories. Submitting articles to directories has many other benefits as well. Article submission can help you to:

  • Showcase your expertise. Articles that share valuable information about your industry will help you gain trust from future clients and build your brand. By sharing expertise and publishing to article directories, you will begin to be seen as a resource and a go-to person/company in your field.
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