What is a Compulsory Liquidation?
This is a legal process by which a Liquidator is appointed by order of Court to wind-up a limited company and is usually commenced by a creditor such as HM Revenue & Customs.
A winding-up-petition (WUP) must not be ignored and you should immediately seek advice from an Insolvency Practitioner.
The bank account would usually be frozen as soon as the bank becomes aware of the WUP.
A winding up order would stop your company from trading and its affairs will be investigated by the Official Receiver (OR).
The OR would decide whether to call a meeting of creditors to consider the appointment of a Liquidator.
If it has not already done so the company would cease to trade on the granting of the winding-up order.
All assets of the company, including book debts, would be realised and proceeds of these would fund the cost of the Liquidation. Any excess funds would be available as a dividend to creditors, payable in the order
of priority.
To talk to one of our specialist team members please call 0800 458 3320 and ask
to speak to a member of our Advise Team who will be happy to discuss YOUR personal
circumstances and help YOU decide which way is the best for YOUR Company.
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