The petitioner who is a director and shareholder in software company Sulu Software Consultancy Ltd, sought to wind up the company pursuant to the Companies Act, 2014, section 569 (1) (e) on the grounds that the Company has, due to a breakdown in the relationship with one of the founders, essentially ceased to function and is on the cusp of insolvency.
The respondent objected to the application to wind up the company.
He was also a director of the Company and, at the time the petition was presented, a shareholder, holding just over 25% of the issued share capital of the Company.
At the time the application to the court was made, the company was on the brink of insolvency, with no employees and very little activity happening.
The application to the court was for the court to exercise its discretion on the
‘just and equitable’ ground on arguments put forward by the respondent.
The grounds put forward by the respondent were:
(i) The petitioner had organised the acquisition of the respondents shares in the company after the respondent had resigned.
(ii) The petitioner was part of a plan to remove the non-compete clauses from the contracts of employment of key staff, which was proposed and supported by all the shareholders, except for the respondent; and
(iii) The petitioner had started to work on a new startup company which did not include the respondent.
Also, the respondent urged that the real purpose of the petition was to frustrate his proposed Oppression Proceedings and the Court should exercise its discretion not to grant the winding-up petition in all the circumstances.
The petitioner and respondent were founders of the company which was to design software to help companies leverage the benefits of using crypto currency and associated technology.
There was no dispute that there had been an irretrievable breakdown in the relationship between the respondent and the company.
Both parties agreed that the company was on the brink of insolvency.
The petitioner explained to the court that the company was a start-up with start-up funding which was virtually gone and the Oppression Proceedings by the respondent made it almost impossible to attract new investment. As a result of that, the company passed a resolution supported by all of the shareholders except the respondent, releasing all of the founders, including the respondent, from their non-compete clauses. The Board Minutes in respect of that decision indicated that it arose in
“consideration of the financial position and poor future prospects of the Company.”
The court considered the legislative provisions under the Companies Act, 2014 and relevant case law.
Very extensive submissions were made by both sides and in considering these together with the legislation and case law, the court was satisfied that the appropriate exercise of the court's discretion was to accede to the petition and to make an order for the winding up of the Company and the appointment of the liquidator. Having considered the factual context and having taken account of the submissions made, the court ruled that it was just and equitable that the company be wound up.
Mr Justice Quinn said:
‘The principal reason for this is the undisputed fact that the company is on the cusp of insolvency and has literally only months to go before it runs out of funds and there is no plausible prospect of this not occurring. No solution has been identified that will enable the Company to avoid an imminent insolvency. As Collins J. says in Re Lanskey Ltd. [2022] IECA 34 “there was no adequate or satisfactory alternative remedy here”. To refuse the petition would be to create an unsatisfactory situation. The Company has currently no employees and is carrying on minimal activity. In a few months, the Company will be insolvent with no cash or other assets, and it will be difficult, from a practical point of view, for any liquidator to carry out the functions necessary to wind up the Company properly.’
The judge observed that without investment the company could not fulfil the purpose for which it was created.
In all the circumstances, the court found that it was just and equitable to have the company wound up.
O’Neill (petitioner) v Hudner (respondent) High Court [2025] IEHC 669.

