Court Winding-Up (Compulsory Winding-Up) is common when a company is not able to pay its debts.
It usually starts with a Notice of Demand served on the company by the creditor demanding the company to settle its outstanding debt
Application will be made to court (winding-up petition) if the company fails to settle the debts as per Notice of Demand.
If winding-up order is granted, a Liquidator will be appointed to administer the winding-up of the company.
The following are, amongst others, the grounds for Court Winding Up:
 Disputes, breakdown of trust amongst shareholders which cannot be resolved amicably
 Directors committing fraud or carrying out the business in the manner unfair, unjust and/or not in accordance to members’ interest
 Company is being used for unlawful business activities
 Company not able to continue business due to its license being revoked by the relevant authorities