Compulsory Liquidation
Compulsory Liquidation (CWU) is the process where the court orders that the Company is wound up. The Official Receiver is initially appointed Liquidator although they may subsequently be replaced by an insolvency practitioner.
Once appointed, the Liquidator takes control of the Company from the Directors and although a short period of trading may take place to complete outstanding contracts, it is more common for the Company to cease trading and its assets are sold to repay the costs of the liquidation with any surplus being paid to creditors.
