2. There is still no reply from AZ Company, even after it received the written demand. Can Mr. C proceed to file a winding-up petition in Court?
Mr. C can file a winding-up petition against AZ Company if the company is still “unable to pay its debts” 21 days after receiving the written demand. With reference to Section 178 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32), a company shall be deemed to be unable to pay its debts if: “a creditor, by assignment or otherwise, to whom the company is indebted in a sum then due equal to or exceeding the specified amount ($10,000), has served on the company, by leaving it at the registered office of the company, a demand under his hand requiring the company to pay the sum so due, and the company has for 3 weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor.”