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B. Things you need to note before presenting a winding-up petition

Under sections 177 & 178 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32), it is a ground for petition if the company is unable to pay a debt of $10,000 or above (or an amount prescribed by the Financial Secretary of the HKSAR Government in special circumstances).

 

If it is anticipated that there will be a genuine dispute over the debt (the company is likely to argue, or just denying its liability for the debt), the creditor may sue the company for a judgment instead of presenting a winding-up petition. In other words, the creditor may institute legal proceedings against the company in order to obtain a court judgment to ascertain the company's liability for the debt. If the company still fails to comply with a court judgement to repay the debt, the creditor may then proceed to enforce the judgement by filing a winding-up petition (or enforce it through other legal proceedings). 

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