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200. Definition of inability to pay debts

(1) A Company is deemed unable to pay its debts —
(a) if a creditor to whom the Company is indebted in a sum exceeding $2,000 then due has served on the Company a written demand, by leaving it at the Company's registered office, requiring the Company to pay the sum so due and the Company has for three (3) weeks thereafter neglected to pay the sum or to agree terms in relation to its payment to the reasonable satisfaction of the creditor;
(b) if execution or other process issued on a judgment, decree or order of any Court in favour of a creditor of the Company is returned unsatisfied in whole or in part; or
(c) if it is proved to the satisfaction of the Court that the Company is unable to pay its debts as they fall due.
(2) A Company is also deemed unable to pay its debts if it is proved to the satisfaction of the Court that the value of the Company's current assets is less than the amount of its current liabilities, taking into account its contingent and prospective liabilities.
(3) The money sum for the time being specified in subsection (1) is subject to increase or reduction by these Regulations; but no increase in the sum so specified affects any case in which the winding-up petition was presented before the coming into force of the increase.