Government regulations regarding liquidating assets
Landlords may not distrain for rent after the winding up application has been presented.
However, if distress proceedings are completed before that date, landlords are entitled to net proceeds of sale of up to 12 months' rent.
a) Proceedings against the company An application may be made to the Court to stay or restrain pending proceedings against the company at any time after the presentation of a winding up application and before a winding up order has been made.
No action or proceeding shall be proceeded with or commenced against the company except with the Court's leave after a winding up order has been made.
The liquidation commences at the time of passing the resolution.c) Execution proceedings After a winding up application has been presented, no creditor is allowed to take out or continue attachment or execution proceedings against the company.A creditor must complete execution before the winding up application has been presented. For example, goods under a writ of seizure and sale must be seized and sold; garnishee proceedings are completed on receipt of the debt.The applicant has to pay a winding up deposit of ,400 to the Official Receiver, and the Court may appoint the Official Receiver or an approved liquidator as the liquidator of the company.The winding up is deemed to have commenced as at the date of the presentation of the winding up application. 50) states all the grounds under which the Court may liquidate a company.