442

Provisions
as to

Ch. 31. No. 1.] Companies.

 

(3) if it is proved to the satisfaction of the Court
that the company is unable to pay its debts, and, in
determining whether a company is unable to pay its
debts, the Court shall take into account the contingent
and prospective liabilities of the company.

Petition for winding up and effects thereof.

163. (1) An application to the Court for the winding up

applications Of a company shall be by petition, presented subject to the

up.

Provided that

for winding = provisions of this section either by the company, or by any
creditor or creditors (including any contingent or prospective
creditor or creditors), contributory or contributories, or
by all or any of those partie. together or separately:

 

(a) a contributory shall not be entitled to present a
winding up petition unless—

(i) either the number of members is reduced, in
the case of a private company, below two, or, in
the case of any other company, below seven; or

(ii) the shares in respect of which he is a con-
tributory, or some of them, either were originally
allotted to him or have been held by him, and
registered in his name, for at Icast six months
during the eighteen months before the com-
mencement of the winding up, or have devolved
on him through the death of a former holder;
and

(6) a winding up petition shall not, if the ground of
the petition is default in delivering the statutory
report to the Registrar or in holding the statutory
meeting, be presented by any person except a share-
holder, nor before the expiration of fourteen days after
the last dav on which the meeting ought to have been
held; and

(c) the Court shall not give a hearing to a winding up
petition presented by a contingent or prospective
creditor until such security for costs has been given as
the Court think: reasonable and until a prima facie
case for winding up has been established to the satis-
faction of the Court.