Compulsory Liquidation
- A compulsory liquidation is a liquidation ordered by the Court
- Usually as a result of a petition presented to the Court by a creditor
- A compulsory liquidation is the only method by which a creditor can bring about a liquidation of its debtor company.
- Official Receiver is initially appointed liquidator and he undertakes investigation into the directors’ conduct.
- External Liquidator can be appointed whose responsibilities are to realise assets and distribute to creditors