Official Liquidation
A court-ordered liquidation in which a liquidator is appointed by the court to wind up an insolvent company.
Court-ordered liquidation
Official liquidation, sometimes called a court liquidation, is a winding up that begins because a court has ordered it and appointed a liquidator. It commonly follows an application to the court, for example after a company fails to comply with a statutory demand. Once the order is made, the liquidator takes control of the company and proceeds to realise assets and deal with creditor claims.
How it compares
Official liquidation differs from a voluntary liquidation mainly in how it starts: by court order rather than by a decision of members or creditors. The end result, an orderly winding up and eventual deregistration, is broadly similar. This is general information only and not legal advice. The general process is explained at liquidation.
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