A winding up petition is a petition to bring the life of a company to an end. From the point of view of a creditor (person/company to whom money is owed), commencing winding up proceedings should be regarded as a last resort.

Under section 122 Insolvency Act 1986 (“IA 1986”), there are certain prescribed circumstances in which a winding up petition can be filed with the court. One of those prescribed circumstances is when a company is unable to pay debts in excess of £750.