Part 13

Other special types of company etc
Chapter 6

Banks etc in compulsory liquidation

Interpretation of Chapter
641
1
This section applies for the purposes of this Chapter.
2
Winding up proceedings start against a company at the time when the petition for its winding up by the court is presented.
3
There is the permanent cessation of a company's trade if—
a
the company ceases to carry on the trade, or
b
the company ceases to be within the charge to corporation tax in respect of the trade,
whether or not the trade is in fact ceased.
4
A company is insolvent at any time if at that time—
a
it is unable to pay its debts as they fall due, or
b
the value of its assets is less than the amount of its liabilities (including its contingent and prospective liabilities).
5
“Company” means—
a
a company as defined in section 1(1) of the Companies Act 2006, or
b
an unregistered company as defined in section 220 of the Insolvency Act 1986 or Article 184 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I.19)).
6
For the meaning of “deposit-taking trade” and “winding up receipt”, see sections 635(3) and 636(3) respectively.