Compulsory Winding-Up
/kəmˈpʌlsəri ˈwaɪndɪŋ ʌp/
Definitions
- (n.) A court-ordered process to liquidate a company’s assets to pay creditors when the company is unable to meet its debts.
The creditors petitioned for compulsory winding-up after the company defaulted on its obligations.
Forms
- compulsory winding-up
Related terms
See also
Commentary
Typically invoked by creditors or sometimes by the company, compulsory winding-up is distinct from voluntary winding-up and usually requires a court order.
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