What is Compulsory Liquidation?

In contrast to a Creditors' voluntary liquidation, a compulsory liquidation is initiated by the court following the presentation of a winding-up petition against the Company. The Company is wound up, and the process would ordinarily commence with the Official Receiver.  Compulsory liquidation is generally a hostile process and, in most circumstances, should be avoided. 

If you have received a winding-up petition or the threat of winding-up proceedings, it is not too late to discuss your options and responsibilities as a director.