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Business Recovery & Insolvency
COMPULSORY LIQUIDATION
If a company is insolvent then sometimes
entering a formal insolvency procedure is unavoidable or even
considered to be the best course of action given the circumstances
of the company concerned.
A liquidator is appointed to a company either by the courts
through Compulsory Liquidation or voluntarily from the instigation
of its directors. The main aim of a liquidators appointment
is to bring the company’s life to an end, to maximise the
return to the company’s creditors and to seek its eventual
dissolution.
A compulsory liquidation is usually initiated by a creditor
by petitioning the court for a wind up order. There are many
grounds in which a petition may be sought. The most common are:
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the company is unable to pay its debts |
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the company has passed a special resolution
to wind up |
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the court is of the opinion that it
is just and equitable to wind the company up |
A company is considered to be in a position
to be unable to pays its debts if a statutory demand is issued
and not paid, if an execution of a judgement debt is unsatisfied
or if the court is satisfied the company in unable to satisfy
its debts.
For more information or to arrange
your initial free consultation please telephone Mark Botwood
on (01902) 393007.
Please select an area you are interested
in from the list below.
To find out more, please explore
the links. |
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