Who handles a compulsory liquidation?
The Official Receiver (OR) handles the early stages of a compulsory liquidation.
The OR will tell the company's creditors and contributories (mainly shareholders) that the company is being wound up. If there are significant assets, an insolvency practitioner (IP) may be appointed as liquidator in place of the OR, either by the Department of Enterprise, Trade and Investment or at the first meeting of creditors or contributories (shareholders).
The liquidator's role is to realise the company's assets, pay the fees and charges arising from the liquidation and share out any remaining funds to the creditors. In very rare instances a surplus may be available for distribution to shareholders.
Who is the Official Receiver (OR)?
The OR is a civil servant and an officer of the High Court. As well as administering cases, the OR has a duty to investigate the affairs of individuals in bankruptcy and companies in compulsory liquidation. He reports any evidence of criminal offences and conduct which makes an individual unfit to be a company director to The Insolvency Service's Directors Disqualification Unit.
Who are insolvency practitioners (IPs)?
IPs work in the private sector. They are usually accountants or solicitors. They must be authorised by the Department of Enterprise, Trade and Investment or by one of the Recognised Professional Bodies (RPBs) before they can act as IPs. The majority of IPs are authorised by RPBs. IPs acting as administrative receivers, administrators or liquidators in creditors' voluntary liquidations, report evidence of unfit conduct by directors in those proceedings to The Insolvency Service's Directors Disqualification Unit.
