Compulsory Liquidation of a Company
A Compulsory Liquidation can be initiated by either the; Director, Company or a Creditor.
Compulsory Liquidation of a company should be used as a last resort by any party wanting to wind-up a company.
This is a court-led procedure and so an Official Receiver will be appointed to all Compulsory Liquidation procedures.
What is a Compulsory Liquidation?
A Compulsory Liquidation of a company is a court-led process that should be used as a last resort to wind-up a company. Whether it is the creditor, director or company themselves looking to dissolve the company, they should explore other options before proceeding with the winding-up petition for a Compulsory Liquidation.
If the liquidation process is decided upon, then it will be at the court’s discretion when the hearing will be called for a winding-up order to be presented to the company.
This liquidation process is only available to insolvent companies, and is typically started by a creditor who is owed more than £750 from a company and is tired of waiting for their payment.
How FA Simms can help
If we are contacted early enough we can advise company directors on alternative liquidation and business rescue processes. Depending on how far into the process the company has gone, will depend on the exact help and assistance we can provide.
For further help and advice, contact our Insolvency Practitioners.