Understand the position
Clear information before you decide what to do next
Understand compulsory liquidation, winding up orders, the Official Receiver and what directors must do next.
- Usually follows a creditor winding up petition
- The Official Receiver initially handles the case
- Directors must provide records and cooperate
The court makes the winding up order
A creditor, the company or another eligible party may present a petition. If the court makes an order, the company enters compulsory liquidation and the Official Receiver becomes responsible for the case unless another liquidator is appointed.
Trading and director powers end
Directors lose control of company assets and cannot continue acting for the company unless authorised. Bank accounts and operations are affected, and employees and contracts require immediate attention.
The company’s affairs are examined
The office holder collects information, realises assets, deals with creditor claims and reviews the causes of failure and director conduct. Full cooperation and reliable records are important.
Practical next steps
What to prepare now
A clearer picture helps the first conversation focus on realistic options.
- Confirm whether a petition or order has been made
- Preserve all company books and digital records
- Do not dispose of company assets
- Arrange urgent advice about director and employee obligations
Common questions
Compulsory Liquidation FAQs
Who controls the company after a winding up order?
The Official Receiver initially takes control, and an insolvency practitioner may later be appointed as liquidator.
Can a director stop the process after the order?
Court applications may be possible in limited circumstances, but urgent specialist legal advice is required.
Are directors automatically personally liable?
No. Company debts do not automatically become personal, although guarantees, loan accounts and certain conduct may create exposure.
This page provides general information and is not legal, tax or financial advice. The right action depends on the company’s circumstances. Formal insolvency procedures must be handled by an appropriately authorised professional.
