Section 93Part 5 — Company Restructuring and Winding Up
Definition of inability to pay debts
←→ Navigate · Click subsection badges to collapse · Press ? for help
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 at law or in equity in a su m exceeding one hundred dollars then due, has served on the company by leaving at its registered office a demand under that person’s hand requiring the company to pay the sum so due, and the company has for the space of three weeks succeeding the service o f such demand, neglected to pay such sum, or to secure or compound for the same to the satisfaction of the creditor;
execution of other process issued on a judgment, decree or order obtained in the Court in favour of any creditor at law or in equity in any proceedings instituted by such creditor against the company, is returned unsatisfied in whole or in part; or
it is proved to the satisfaction of the Court that the company is unable to pay its debts.