Dissolution of a company following compulsory liquidation or creditors' voluntary liquidation
Produced in partnership with Ian Defty of CVR Global LLP
Dissolution of a company following compulsory liquidation or creditors' voluntary liquidation

The following Restructuring & Insolvency guidance note Produced in partnership with Ian Defty of CVR Global LLP provides comprehensive and up to date legal information covering:

  • Dissolution of a company following compulsory liquidation or creditors' voluntary liquidation
  • Compulsory liquidation or winding up by the court
  • Creditors’ voluntary liquidation

Dissolution marks the end of a company’s life. It constitutes the formal termination of a company as a legal entity and for insolvency purposes ends the insolvency process as well as giving the liquidator their release.

Compulsory liquidation or winding up by the court

On the making of a winding-up order by the court the official receiver (OR) is appointed as liquidator.

When the OR has completed their enquiries and is satisfied that all the following criteria are met, a combined notice of report to creditors and release notice including the date of (potential) dissolution, should be sent to creditors and contributories by the OR. The criteria for satisfaction are:

  1. there are no assets, or no further assets, to be realised or dealt with

  2. the OR is reasonably satisfied that all creditors and employees are aware of the winding up proceedings,

  3. the directors have complied with their statutory obligations with regard to the winding up, and

  4. further enquiry, prosecution and/or disqualifications are not proposed

The OR may apply to the Registrar of Companies for early dissolution of the company.The company will be dissolved three months after the application is registered at Companies House.

In accordance with rule 7.70 of the Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016), the OR must deliver the notice of intention to dissolve to the creditors