Compulsory liquidation (“CPL”)

A compulsory liquidation is initiated by a creditor owed at least £750 (as currently prescribed) who petitions the Court to formally wind up the company that owes the money. On the making of the winding up order one of the Official Receivers is appointed liquidator pending a meeting of the company’s creditors and contributories convened to consider appointing a liquidator in place of the Official Receiver. The primary duty of the liquidator is to maximise realisations so as to minimise losses to creditors and shareholders.

Liquidation is a terminal solution followed by the dissolution of the company.

If you would like some more information on the compulsory liquidation services we provide, please contact corporate.insolvency@aabrs.com