Compulsory liquidation for companies and limited liability partnerships: the process

Introduction

If your company or limited liability partnership (LLP) is unable to pay its debts and there are no other ways of financially resolving the situation, it can be wound up by the court and put into compulsory liquidation.

A petition to wind up a company or LLP can be presented to the High Court (sometimes a county court) by one or more creditors who are owed more than £750. A winding-up petition can also be made by other parties including a company or LLP itself and the directors or shareholders of a company or designated members of an LLP.

The petition starts the process which leads to the dissolution of the company or LLP.

This guide outlines how a company or LLP can be compulsorily liquidated and which documents must be delivered to the Registrar of Companies.

It explains the winding-up procedures that must be followed and how to prepare for the interview with the official receiver, the government official appointed by the court to manage the insolvency process.

Subjects covered in this guide

• Introduction
• Compulsory liquidations
• The winding-up procedure
• Winding-up orders
• Preparing for an interview with the official receiver
• What happens at the interview with the official receiver
• What happens after the interview with the official receiver
• How long the liquidation process takes
• Acting as the director of another company or member of an LLP during liquidation
• Criminal proceedings in compulsory winding up
• What to do if you are dissatisfied with the handling of the liquidation