Section 178: Meaning of “inability to pay debts”
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
178. Meaning of “inability to pay debts”
Unless the contrary is proved, and subject to section 179, a company is
presumed to be unable to pay its debts as they become due in the ordinary
course of business where—
(a) the company has failed to comply with a statutory demand;
(b) execution issued against the company in respect of a judgment
debt has been returned unsatisfied;
(c) a person entitled to a charge over all or substantially all of the
property of the company has appointed a receiver under the instrument creating the charge; or
(d) a compromise between a company and its creditors has been put
to a vote in accordance with Part XVII and Part XVIII of the
Companies Act but has not been approved.