Compulsory liquidation, also known as compulsory winding-up, is the process of liquidating a company by a court order. This detailed guide covers its definition, examples, frequently asked questions, related terms, and further reading suggestions.
The Insolvency Service is an executive agency under the Department for Business, Innovation and Skills tasked with investigating and managing bankruptcies and liquidations.
Liquidation, also known as winding-up, refers to the process of distributing a company's assets among its creditors and members, which ultimately leads to the dissolution of the company. The process can be voluntary or court-ordered.
A person appointed to manage the winding-up process of a company, ensuring orderly asset distribution to creditors and members.
Members' Voluntary Liquidation (MVL) is the process of winding up a solvent company by the members' resolution, followed by the appointment of a liquidator and declaration of solvency by directors.
A statutory demand is a formal request issued by a creditor to a debtor demanding the repayment of an outstanding debt. It serves as evidence of a debtor's inability to pay if unmet, and can support a compulsory liquidation petition under the Insolvency Act 1986.
A winding-up petition is a legal document presented to a court in the UK, seeking an order for a company to be placed into compulsory liquidation, typically due to insolvency.
