Insolvency & Corporate Restructuring

Winding up is governed by the Companies Act 2017 (Sections 212-217). A winding up petition can be filed by the company, creditors, or contributors. Grounds include inability to pay debts, just and equitable grounds, and special resolution. The petition is filed in the High Court. The court appoints a liquidator who realizes assets and distributes proceeds to creditors under Section 214. The limitation period is 3 years. The order must be advertised in the official gazette.

Corporate restructuring involves reorganizing a company's structure, operations, or finances. Under the Companies Act 2017, restructuring can be achieved through mergers, acquisitions, demergers, or scheme of arrangement under Section 279. SECP approval is required for certain restructuring transactions. Creditor approval may also be required. The process involves filing applications with SECP and obtaining court approval for scheme of arrangement.

Under Section 212 of the Companies Act 2017, grounds include: (a) special resolution of the company, (b) inability to pay debts (tested under Section 213), (c) just and equitable grounds, (d) commencement of business after one year, (e) reduction in membership below legal minimum, (f) default in holding statutory meeting. The petition is filed in High Court. The court has discretion to grant or dismiss the petition.

A scheme of arrangement under Section 279 of the Companies Act 2017 allows a company to restructure its capital, operations, or debt with creditor and member approval. The scheme requires approval of 75% of members and creditors by value present and voting. The High Court must sanction the scheme under Section 280. It is commonly used in debt restructuring, corporate rehabilitation, and mergers. The scheme is binding on all stakeholders once sanctioned.

Insolvency and corporate restructuring are governed by the Companies Act 2017 (winding up, restructuring, scheme of arrangement), the Financial Institutions (Recovery of Loans) Ordinance 2001 (for banking debts), the Insolvency Act 2020 (personal insolvency and bankruptcy), and SECP regulations. The CPC 1908 applies for procedural matters. The Limitation Act 1908 applies for time limits. High Court has primary jurisdiction over winding up matters.

Top insolvency and corporate restructuring lawyers in Peshawar include Advocate Atif Zia Khattak (winding up petitions under Companies Act 2017, debt restructuring, corporate rehabilitation), Advocate Syed Muhammad Ishaq Shah (insolvency proceedings and creditor representation), and Advocate Ahsan Masood Khan (corporate restructuring, mergers, and writ petitions). All are experienced in corporate law and insolvency matters.