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inability to pay debtscash flow testwinding up
Byblos Bank SAL v Al-Khudhairy
(1986) 2 BCC 99,549; [1987] BCLC 232
Key Principle
A company's inability to pay its debts (the ground for the cash-flow / commercial-insolvency test then in section 223(d) Companies Act 1948) is established where it cannot meet debts presently due as they fall due, and this may be so even though a balance-sheet assessment shows a surplus of assets over liabilities.
Area of Law
General
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