What can I do to appeal or stop compulsory liquidation?
“The winding up order was successful, now the creditor’s want their money, what do I do next?”
If a winding up order is granted, your company will go into Compulsory liquidation. The company’s assets are put up for sale and any proceeds are distributed to the company’s creditors.
The liquidation is initially handled by the Official Receiver who is an officer of the High Court.
They have the duty of conducting the investigations into the companies in compulsory liquidation and producing a report that is used as evidence in court.
If your company has significant assets, the shareholders can appoint an Insolvency practitioner as the liquidator instead of the OR.
The liquidator’s role involves turning the company’s assets into cash and arranging payments to the creditors.
The company is then shut down.
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There are ways that a winding up proceeding can be halted:
- You can ask the court to rescind the order if it doesn’t have all the relevant facts within seven days of a ruling
- You can launch an appeal against the order within a month of the order being made.
- the liquidator can apply for a stay of proceedings if the director is able to regain control of the company.
If you are considering taking any action you must take professional advice from an insolvency practitioner and cooperate with the Official Receiver at all times.
If you need the services of an Insolvency Practitioner contact us now.