compulsory winding-up

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A procedure for winding up a company by the court based on a petition made under circumstances listed in the Insolvency Act 1986. The main grounds for this type of petition are that the company is unable to pay its debts or that the court is of the opinion that it is in the interests of the company that a just and equitable winding-up should be made (Insolvency Act 1986 s 122). Any director, contributory, or creditor of the company, the supervisor of a voluntary arrangement, or the Secretary of State may make such a petition (Insolvency Act 1986 s 124). The winding-up is conducted by a liquidator, who is supervised by the court, a liquidation committee, and the Department of Business, Enterprise and Regulatory Reform.

Subjects: Law.

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