Compulsory Liquidation (or Compulsory Winding-Up) – this is when the Court makes an Order for the company to be Wound Up (a ‘Winding-Up Order’) on the petition of an appropriate person, usually a creditor. Following the making of a Winding Up Order, by virtue of his office, the Official Receiver (“OR”) becomes liquidator and has a duty to safe guard and protect the assets of the company for the benefit of its creditors.
Following the making of the Winding-Up Order, it is mandatory upon directors to attend an interview with the examiners of the OR and provide information regarding the reasons for the company’s failure and provide a Statement as to the Company’s Affairs (“S of A”).
It is the duty of all directors to co-operate with the OR, failure on their part to do so, could amount to an application being made to the court for their public examination and, failure to attend such examination, amounts to contempt of court and could result in their arrest and imprisonment.
In this regard, we can assist and advise directors in relation to their statutory obligations including:
• The initial interview;
• The preparation of the S of A;
• Any other matter they may be required to deal with, following the winding up of their company.
Following the statutory interviews and submission of the S of A, the OR must, as soon as practicable, convene respective meetings of the company’s Creditors and Members with a view to them appointing a liquidator of their choice.
Unfortunately, despite the best efforts of the OR, to deal with all liquidations in a timely, efficient and professional manner, delays on the part of the Courts to compel non co-operating directors to submit to statutory interviews, often cause delays in meetings being set, sometimes several years after the winding up order is made.
Our mission at CRI is to assist the OR’s efforts, in expediting meetings, in every way we can.
Simply contact us for free, no obligation advice.
Our team of professional and friendly advisors will guide you through this difficult time, providing you with advice and guidance.