Compulsory liquidation

A compulsory liquidation (or compulsory winding up) is a liquidation which is ordered by the court, usually on the petition of a creditor but can be by the company or a shareholder. There are a number of reasons for making a winding up order. The most common is because the company is insolvent. The consequences for a company receiving a winding up petition are very serious with time being of the essence to prevent the petition being advertised. We can assess the overall financial position of the company and give advice on the options available and the responsibilities of the directors.

A compulsory liquidation is the only form of liquidation that may be applied to insolvent partnerships in England Wales and Northern Ireland. Such circumstances may result in individual partners entering bankruptcy or individual voluntary arrangements.

We are on a number of official receiver’s rotas and have acted under both secretary of state appointments and in succession to the official receiver following the holding of a creditors meeting.