This Statement provides a guide to post petition dispositions
of property by a company.
Winding-up by the Court
When an order is made for the winding-up of a company, it is
deemed to have commenced from the time of the presentation of the
petition (section 129 of the Insolvency Act 1986
("IA86")). This provision essentially
means that a winding-up order made by the Court has retrospective
effect. As a consequence, the law also affects the status of
transactions made by a company during the period between the
presentation of the winding-up petition and the making of the
winding-up order.
Section 127(1) IA86 provides that "In a winding-up by
the court any disposition of the company's property, and any
transfer of shares, or alteration in the status of the
company's members, made after the commencement of the
winding-up is, unless the court otherwise orders,
void."
