Compulsory Liquidation is not an outcome that would come out of the blue. It is the inevitable conclusion of a company failing to meet its liabilities and thus becoming insolvent.
The business is no longer viable and a Creditor has petitioned for the Company to be wound up due to continual non-payment. If full payment is not made or a settlement is not reached, the Company will eventually be forced into Compulsory Liquidation. Prior to this, it is highly likely that the Company director(s) will have been pressed by the Creditor(s) for payment for some time and served a statutory demand. If the indebted Company fails to pay the statutory demand within 21 days and does not dispute the debt, it is at this point that the Creditor can petition for the Company to be wound up – also known as Compulsory Liquidation. At the earliest possible stage in the Compulsory Liquidation process, it is highly recommended that you speak with a Licensed Insolvency Practitioner for advice.
As a Company director, you must take action immediately on receiving the Winding-Up Petition if you wish to save your business