A compulsory liquidation is a company insolvency whereby a company is wound up through the Court. The Official Receiver can appoint an insolvency practitioner to become the liquidator with the objective to realise the assets of the company and distribute any remaining funds to its creditors.
WHAT IS COMPULSORY LIQUIDATION
THE WINDING UP PROCESS
A compulsory liquidation is a remedy for creditors and a winding up petition is commonly issued against a company as a result of non-payment of goods or services or non-payment of Crown monies. Prior to this, a statutory demand is served on the company for non-payment and if this debt is not disputed or settled within 21 days the creditor can petition to the Court for the winding-up of the company which can lead to its bank accounts being frozen and unable to trade.
LET'S WORK TOGETHER
Company directors should seek immediate advice upon the receipt of a statutory demand or presentation of a winding-up petition. Please call our head office on 01992 392030 to speak confidentially with one of our directors.