Companies Act 2014 section 576

Effect of winding-up order

Section 576 deals with the effect of a court-ordered winding up and confirms that such an order operates for the benefit of all creditors and contributories equally.

• A winding-up order made by the court benefits all creditors of the company, not just the one who applied for it.
• The order equally benefits all contributories of the company.
• The order has the same effect as if it had been made on a joint petition by both a creditor and a contributory together.
• No individual creditor or contributory gains a superior position simply because they were the party who initiated the winding-up proceedings.