How is a Company Liquidated?

  • You may have noted the “Voluntary” word used in the Methods of Liquidating section above
  • Voluntary means that the company directors and shareholders start the process at a time to suit them
  • A Licensed Insolvency Practitioner must act as a voluntary liquidator of a company
  • A Compulsory Winding Up is started through the courts usually through enforcement action for unpaid debts

Insider Tips:

An insolvent compulsory route is the one that HMRC will follow to pursue unpaid taxes from the company.  HMRC will issue a threat of company winding up and will then issue a winding up petition through the courts. This proceeds to a court hearing to put the company into compulsory winding up.