Companies Act 2014 section 1402

Circumstances in which company may be wound up by the court

Section 1402 sets out the specific circumstances in which the court may wind up an investment company on "just and equitable" grounds, replacing the general winding-up provision in Section 569(1)(e) which does not apply to investment companies.

• The general "just and equitable" winding-up ground in Section 569(1)(e) is disapplied for investment companies and replaced by the bespoke provisions set out in this section.
• Only the company's trustee — the person nominated by the Central Bank under Section 1396(4)(iii) — may present the winding-up petition, and only after notifying the company of its intention to resign with at least six months having elapsed without a replacement trustee being appointed.
• The court must consider any conditions imposed by the Central Bank under Section 1396 regarding trustee resignation and replacement, and must be satisfied that winding up would best serve the interests of the company's shareholders.
• If there is a management company carrying out management functions for the investment company, the winding-up petition must also be served on that management company.