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