Circumstances in which members of insolvent partnerships may be wound up or made bankrupt by the court: Section 122 corporate member Section 267 individual member
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(a).Section 122 is modified so as to read as follows—
“122. A corporate member or former corporate member may be wound up by the court if it is unable to pay its debts.”.
(b).Section 267 is modified so as to read as follows—
“267.—(1) Where a petition for the winding up of an insolvent partnership has been presented to the court by virtue of article 8 of the Insolvent Partnerships Order 1994, a creditor’s petition against any individual member or former individual member of that partnership by virtue of that article must be in respect of one or more joint debts owed by the insolvent partnership, and the petitioning creditor or each of the petitioning creditors must be a person to whom the debt or (as the case may be) at least one of the debts is owed.
(2) Subject to section 268, a creditor’s petition may be presented to the court in respect of a joint debt or debts only if, at the time the petition is presented—
(a)the amount of the debt, or the aggregate amount of the debts, is equal to or exceed the bankruptcy level,
(b)the debt, or each of the debts, is for a liquidated sum payable to the petitioning creditor, or one or more of the petitioning creditors, immediately, and is unsecured,
(c)the debt, or each of the debts, is a debt for which the individual member or former member is liable and which he appears to be unable to pay, and
(d)there is no outstanding application to set aside a statutory demand served (under section 268 below) in respect of the debt or any of the debts.
(3) “The bankruptcy level” is £750; but the Secretary of State may by order in a statutory instrument substitute any amount specified in the order for that amount or (as th case may be) for the amount which by virtue of such an order is for the time being the mount of the bankruptcy level.
(4) An order shall not be made under subsection (3) unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.”.