Windup by Court
Windup by Court
Windup by Court is a legal process initiated by a creditor through a court order to forcibly close down and liquidate an insolvent company. This usually occurs when a company fails to repay its debts and a creditor petitions the court to wind up (close down)the company. It’s a compulsory process where a court-appointed liquidator sells the company’s assets to repay creditors.
When to Consider Windup by Court:
How RTI Can Assist:
At RTI, we help directors navigate the CVL process, ensuring compliance with insolvency law while safeguarding your personal liabilities. Our team works with you to maximize returns for creditors and facilitate a smooth and efficient closure of your business.
If your business is facing a winding-up petition, RTI can provide crucial advice on how to manage the situation. Our licensed insolvency practitioners will guide you through the court process, ensuring compliance with legal obligations and protecting your interests throughout the winding-up process.
FAQ
Is there an investigation?
Yes, the liquidator is obligated to investigate why the company failed, though this rarely results in actions against the director.
How quickly can the company be liquidated?
A company can be liquidated in 3-4 weeks after all necessary information is provided and the fee is paid. The process typically takes 6-7 months to complete.
Who pays the costs of putting the company into Liquidation?
If the company doesn’t have sufficient cash, the director must pay the agreed liquidation fee, which is usually far less than the company’s debts.
A Windup by Court is an involuntary process typically initiated by creditors, unlike Creditors Voluntary Liquidation (CVL), which is a voluntary decision made by the company directors to wind up the business. If you’re facing creditor pressure, a CVL may give you more control over the liquidation process.
Pages related to Company Liquidation
CVA Company Voluntary Arrangement
Creditors Voluntary liquidation (CVL)