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Conversion of members' to creditors' winding up
If the liquidator in a members' winding up forms the opinion that the company will not be able to pay its debts in full within the period stated in the declaration of solvency, he must forthwith summon a meeting of creditors and lay before it a statement of the company's assets and liabilities, and thereafter the winding up proceeds as if it were a creditors' winding up ss.281, 284.
A creditor or contributory may petition for a compulsory winding up, notwithstanding that the company is being wound up voluntarily s.303. An application by a contributory will only be upheld if the court is satisfied that the rights of contributories will be prejudiced by the voluntary winding up. In the absence of special circumstances a creditor's application will fail if the other creditors wish the voluntary winding up to continue.
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