Part XXIV

Insolvency

Winding up by the court

Winding-up petitions
367
1
The Authority may present a petition to the court for the winding up of a body which—
a
is, or has been, an authorised person;
b
is, or has been, an appointed representative; or
c
is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
2
In subsection (1) “body” includes any partnership.
3
On such a petition, the court may wind up the body if—
a
the body is unable to pay its debts within the meaning of section 123 or 221 of the 1986 Act (or Article 103 or 185 of the 1989 Order); or
b
the court is of the opinion that it is just and equitable that it should be wound up.
4
If a body is in default on an obligation to pay a sum due and payable under an agreement, it is to be treated for the purpose of subsection (3)(a) as unable to pay its debts.
5
“Agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the body concerned.
6
Subsection (7) applies if a petition is presented under subsection (1) for the winding up of a partnership—
a
on the ground mentioned in subsection (3)(b); or
b
in Scotland, on a ground mentioned in subsection (3)(a) or (b).
7
The court has jurisdiction, and the 1986 Act (or the 1989 Order) has effect, as if the partnership were an unregistered company as defined by section 220 of that Act (or Article 184 of that Order).