Compulsory liquidation
Compulsory liquidation is when a court informs a company that it is insolvent and must file for liquidation. A compulsory liquidation court order is the last stage of the process, the first is where a creditor issues what is known as a winding up petition against a company for unpaid debts. This is an application to the court to close or ‘wind up’ a company if it cannot pay its debts. There are different rules on winding up a company in Scotland.
In England and Wales to wind up a company the creditor must: "be owed £750 or more and be able to prove that the company cannot pay"
Specific forms must be completed and sent to the right court to apply to wind up a company. If successful: "the company assets are sold, any legal disputes are settled, the company collects money it’s owed (and) funds are paid to you and any other creditors'
This may lead to the creditor receiving all (including fees), some or none of the money owed, it is a major action against a company and there are other routes to recovering owed money, best might be to seek advise from debt specialist (or solicitor) to help recover debts.
Fees for a winding up petition in January 2025 were court fees at £332 and a petition deposit (to manage the ‘winding-up’) of £2,600.
For further information visit https://www.gov.uk/wind-up-a-company-that-owes-you-money and for Scotland visit different rules.
[edit] Related articles on Designing Buildings
- Business interruption cover under COVID-19.
- Campaign for cash retentions reform.
- Carillion.
- Cash flow statement.
- Contract claims.
- Fair payment practices.
- Insolvency Act 1986 - Use of Prohibited Names.
- Insolvency in the construction industry.
- ISG administration, October support update.
- ISG files for administration.
- Liens.
- Liquidation in the construction industry.
- New regulations on late payment.
- Profitability.
- Prompt payment.
- Remedies for late payment.
- Resolution planning.
- Scheme for construction contracts.
- Solvency.
- Support for ISG contractors, companies and employees.
- The Late Payment of Commercial Debts Regulations 2013.
Featured articles and news
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
New-style degrees set for reformed ARB accreditation
Following the ARB Tomorrow's Architects competency outcomes for Architects.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.
Preserving, waterproofing and decorating buildings.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.
Heritage staff wellbeing at work survey.