A compulsory liquidation is usually where a creditor has petitioned the Court for the winding up of the company. The official receiver becomes the liquidator but normally appoints an insolvency practitioner to carry out the liquidation. This is also known as a "compulsory winding up".
Within six months of a company being put into liquidation, the Insolvency Practitioner has a duty to report to the Department of Trade & Industry (DTI) on the conduct of any director of an insolvent company who has been a director within 3 years from the date of insolvency. This could lead to prosecution and disqualification.
For further detail on the debt options for limited companies see:
Or for debt options for sole traders and partnerships click here.