Compulsory Liquidation or Compulsory Winding up Process
This process is also called compulsory winding up in UK during which company’s creditors take legal action against it and its assets are sold on court order. In this process company is wound up compulsory by legal action taken by unsecured creditors. Initially the process is handled by Official Receiver as it involves forced selling by court order but after it is handed over to Insolvency Practitioner who deals the issue till final completion. As this process is initiated on the request of creditors therefore they have right to choose and appoint liquidation required to handle the process properly.