Consequences of resolution to wind up
Part IV Winding Up of Companies Registered under the Companies Acts
(1)In case of a voluntary winding up, the company shall from the commencement of the winding up cease to carry on its business, except so far as may be required for its beneficial winding up.
(2)However, the corporate state and corporate powers of the company, notwithstanding anything to the contrary in its articles, continue until the company is dissolved.
2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.
Defined in Sch.4ZZA para.2 · see it in the full Act“articles”, in relation to a company (see section 18 of the Companies Act 2006 );
Defined in s.436(2) · see it in the full ActInterprets the restriction on carrying on business after commencement of winding up. Acquiring leases merely to hold them in liquidation was not a pre-liquidation business, and any marketing by liquidators was asset realisation rather than trading. No breach was established. (see paras [46]-[48])
Confirms that a company’s corporate state and powers continue during a voluntary winding up, supporting the conclusion that the company retains ownership and remains the data controller. (see para [21])
Applies the restriction that a company in voluntary winding up may continue business only so far as required for its beneficial winding up (see para [74]).
What each judgment says about section 87 is in the case-law panel in the full Act.