Companies Act 2014 section 619

Application of bankruptcy rules in winding up of insolvent companies

Section 619 provides for the application of personal bankruptcy rules when winding up an insolvent company, covering creditor rights, provable debts, and the valuation of future liabilities.

• When an insolvent company is wound up, the same rules that apply in personal bankruptcy govern the rights of secured and unsecured creditors, the debts that can be proved, and the valuation of annuities and future or contingent liabilities.
• All persons who would be entitled to prove for and receive dividends from the company's assets may come forward during the winding up and submit their claims.
• Section 51(1) of the Bankruptcy Act 1988 applies in the winding up of an insolvent company, with the bankruptcy "date of adjudication" being read as the date a court winding-up petition was presented or the date a voluntary winding-up resolution was passed.
• Where a voluntary winding-up resolution was passed before a court petition was presented, the relevant date is the date the resolution was passed, not the later court petition date.

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