Compulsory Liquidations and appointment of Provisional Liquidator

We guide directors and their professional advisers, as well as creditors, through compulsory liquidation procedures and if applicable, the appointment of a Provisional Liquidator. This is a formal, court-driven process in which a company is wound up by the court, following the filing of a winding up petition, usually presented by a creditor, but in some instances by shareholders, who may nominate an Insolvency Practitioner to be appointed Liquidator on the making of the order. Once the order is made, control of the company passes from its directors to a liquidator (with the exception of certain residual powers that they may retain), who is appointed to administer the company’s winding up.

The liquidator’s primary duty is to obtain from the directors a statement of the company’s affairs, listing all assets and liabilities. His/her role includes identifying and placing the company’s assets under their control and safe custody, inviting creditors’ claims, investigating the conduct of the directors (where necessary), adjudicating on creditors’ claims, achieving the best possible price from the disposal of the assets and distributing realisations to the creditors in accordance with statutory priorities.