Unlike the voluntary liquidation this process can be instigated by the director or the creditors and in both cases the result is an application to the Court to pass an Order to liquidate the company.
In the Directors case, the majority of directors will need to put forward a statement that the company should be would up compulsorily and the Court will, at the hearing grant the order
In the case of a creditor’s application, such an application will usually follow service of a Statutory Demand which has not been challenged by the company, leaving the creditor free to make an application for Compulsory winding up.
In either case of a Compulsory winding up the Official Receiver is usually appointed as Liquidator in the first instance and will then either manage the company’s affairs until dissolution or will subcontract out the management of the company to a private Practitioner but this is very much dependent on the remaining asset base of the company.
KRE Corporate Recovery LLp will assist in the drafting of the Court paperwork as well as liaising with all creditors.