Section 287 — Companies Act 1993: Meaning of inability to pay debts

287 Meaning of inability to pay debts Unless the contrary is proved, and subject to section 288 of this Act, a company is presumed to be unable to pay its debts if— (a) The company has failed to comply with a statutory demand; or (b) Execution issued against the company in respect of a judgment debt has been returned unsatisfied in whole or in part; or (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 14 of this Act but has not been approved.