Insolvency & Corporate Recovery

Insolvency & Corporate Recovery

Liquidation

So far as an insolvent company is concerned there are two sorts of liquidation.  A creditors' voluntary liquidation and a compulsory liquidation.

Creditors' voluntary liquidation

This occurs when the company calls a meeting of its shareholders to pass a resolution for the voluntary winding up of the company and this is usually followed immediately afterwards with a meeting of its creditors advising them that the company has been wound up. 

A licensed insolvency practitioner will be appointed liquidator of the company and it will be the responsibility of the liquidator to deal with the claims of creditors, realise the assets of the company and generally wind up the company.

Compulsory liquidation

Compulsory liquidation will occur following the presentation of a winding up petition usually by a creditor who is owed money. 

Unless the company can pay off the creditor, the Court will eventually make an Order for the winding up of the company. 

In the first instance it is usually the Official Receiver who will take the office of liquidator but once the Official Receiver has made a preliminary re-assessment of the company's assets and liabilities, he will make a decision whether to appoint an insolvency practitioner to take his place as liquidator.

Once appointed the insolvency practitioner will take over from the Official Receiver and, as above, it is his responsibility to collect in the company's assets, deal with the claims of creditors, make distribution to creditors as appropriate and generally wind up the company.

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Find out more about how we can help you with any aspect of the bankruptcy or insolvency process by getting in touch with Clough & Willis today. Our offices in Bury and Bolton are easily accessible for customers in the north west. 

Give us a call on 0800 083 0815, or fill in our online enquiry form and a member of the team will be in touch.

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