All winding up petitions have to be advertised in the London Gazette, the advertisement of the petition is legal acknowledgment that it has been severed to the general public and is the start of the process for compulsory liquidation.
The purpose of a winding up petition advertisement is to give notice to creditors that a petition has been filed and that they may have a claim against the company. The advertisement will also set out the date, time and place of the hearing.
Creditors are entitled to attend the hearing and object to the winding up order if they believe that they will not be paid if the company is liquidated. If no objection is raised, then the court will make a winding up order and the company will be compulsorily wound up.
However, if an objection is raised, then the court will adjourn the hearing in order to give the parties an opportunity to reach an agreement. If an agreement cannot be reached, then the court will make a decision on whether or not to make a winding up order,
How to advertise winding up petition
For businesses looking to reach a wide audience, placing an ad in the London Gazette can be an effective way to get the word out that a winding up petition has been lodged against a company. The London Gazette is one of the oldest and most respected newspapers in the world, and it still has a large circulation. In addition, the paper is read by a very diverse group of people, so businesses can be sure that their ad will be seen by potential customers from all walks of life.
It is a requirement for any winding up petition to place a notice in this publication.
What details should the advert include?
Unless the court directs otherwise, the petition should be advertised once in the Gazette, not less than seven days after the petition is served on the company.
The advert should include the following details:
- The name of the company and the address of its registered office; or
- The address of its principle place of business if the company is unregistered;
- The address where the petition was served if the company is based overseas;
- The name and address of the petitioner;
- The address of the petitioning company’s registered office;
- The venue where the petition will be heard;
- The name and address of the petitioner’s solicitor (if there is one); and
- The details of any person intending to appear at the hearing, whether to support or oppose the petition.
How much does it cost to advertise a winding up petition?
The costs for advertisement of a winding up petition in the London Gazette are £103.60. The full pricing structure for placing notices in the London Gazette can be found here.
What happens once a winding-up petition is advertised?
Once it has been advertised it must proceed to be heard by the court, therefore a winding up petition may not be withdrawn. Upon advertising the petition will come to the attention of the company’s bank and creditors as well as possibly others (such as the company’s employees, suppliers and customers) this also gives the opportunity for others to support the petition. This will lead to the company’s bank accounts being frozen as well as damaging the reputation and financial stability of the company.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.