Any creditor of a Company can petition to wind-up a Company provided their debt is in excess of the High Court limit of €1,269.74. The process of petitioning to wind-up the Company is dealt with under Section 214 of the Companies Act.
Under this act it must be proved that the Company cannot pay their debts as they fall due. In order to prove this, a Creditor must issue a 21 day letter of demand to the Company’s registered office. Failing the discharge of the debt during this period, this can be const as proof that the Company is unable to pay its debts.
The hearing of the petition should also be advertised in the National Press by the petitioner. The cost of such a petition is quite significant however this cost ranks in priority of all other costs and liabilities should a dividend payment be available.