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Editorial

LATEST PRONOUNCEMENT ON WINDING UP APPLICATIONS

The Court of Appeal has ruled that it may be an abuse of the court’s process for a creditor to threaten winding up proceedings against a debtor company which has offered to place the disputed sum in an escrow account. The court also signalled that a statutory demand issued under section 254(2)(a) of the Companies Act should inform the debtor company that it can either pay the debt or secure or compound for it to the creditor’s satisfaction.

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