Companies Act 2014 section 577

Saving for rights of creditors and contributories

Section 577 preserves the right of creditors and contributories (shareholders liable to contribute in a winding up) to apply to have a company wound up by the court, even where a voluntary winding up is already under way.

• A voluntary winding up does not prevent a creditor or contributory from asking the court to wind up the company instead.
• Creditors may apply to the court without needing to meet any additional threshold beyond the normal grounds for a court winding up.
• A contributory who applies must satisfy the court that their rights would be prejudiced if the voluntary winding up were allowed to continue.
• This provision acts as a safeguard, ensuring that neither creditors nor contributories are locked into a voluntary process that may not adequately protect their interests.