Section 74: Winding up orders
322.This section applies if a person other than the Secretary of State petitions for the winding-up of a universal service provider and sets out how the court should act in certain circumstances.
323.Subsection (2) provides that the court is not to exercise its powers on a winding-up petition (for example, the power to grant the winding up order – see subsection (4)) unless:
notice of the petition has been served on the Secretary of State and OFCOM, and
a period of at least 14 days has elapsed since the service of the last of those notices to be served.
324.The notice and 14 day period are intended to avoid a winding up order being granted before the Secretary of State and OFCOM have been given an opportunity seek a postal administration order.
325.If an application for a postal administration order is made before the winding-up order is made (that is, within the 14 day period), subsection (3) allows the court to exercise its powers under section 71 (for example, to make a postal administration order) instead of exercising its powers on the petition for the winding up order.
326.Subsection (4) clarifies that references in this section to the court’s powers on a winding-up petition are to:
its powers under section 125 of the Insolvency Act 1986 (for example, to make a winding up order or dismiss the petition etc.) other than its power of adjournment, and
its powers under section 135 of the Insolvency Act 1986 (for example, to appoint a provisional liquidator).
