Compulsory Liquidation
What is compulsory liquidation? A guide to understanding the process for company directors
Compulsory liquidation (WUC) is a formal insolvency procedure which results in a company being forcibly shutdown. The compulsory liquidation process is typically initiated by disgruntled or otherwise outstanding creditors of a limited company through a court order known as a Winding Up Petition (WUP). A WUP notifies a company that a petition has been lodged to bring about the closure of the business and the liquidation of its assets.
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Compulsory liquidation (WUC) is a formal insolvency procedure which results in a company being forcibly shutdown. The compulsory liquidation process is typically initiated by disgruntled or otherwise outstanding creditors of a limited company through a court order known as a Winding Up Petition (WUP). A WUP notifies a company that a petition has been lodged to bring about the closure of the business and the liquidation of its assets.
Other Products and Services from Real Business Rescue
COVID-19 Coronavirus Help Centre
We are here to help and support your business through the escalating coronavirus outbreak. Providing expert assistance with managing cash flow, negotiating a Time to Pay arrangement with HMRC, through to sourcing emergency finance.
Staff Payment & Furlough Concerns
n response to the coronavirus pandemic, the government introduced a range of initiatives to help businesses weather the storm and cushion the economic shock. One of the most successful and widely used measures has been the Coronavirus Job Retention Scheme (CJRS) which has been used in some form or other by two thirds of businesses since it was introduced in March 2020.
A series of extensions means this scheme will now run until the end of March 2021.
As part of the scheme, employers who have been hit by a drop in trade due to coronavirus related business interruption, can furlough those staff who for whom there is not adequate work. The government will cover 80% of their salary up to a monthly cap of £2,500. Employers can choose to top this up to 100% if they wish.
A series of extensions means this scheme will now run until the end of March 2021.
As part of the scheme, employers who have been hit by a drop in trade due to coronavirus related business interruption, can furlough those staff who for whom there is not adequate work. The government will cover 80% of their salary up to a monthly cap of £2,500. Employers can choose to top this up to 100% if they wish.
Can't Afford to Pay Staff
Not being able to pay your staff their wages on payday could spell disaster for your business. Without a workforce you could see operations rapidly grinding to a halt, preventing you taking on any new work and struggling to fulfil current orders. For the ongoing viability of your business, having staff you can rely upon to carry out the work required is vital. In order for you to be able to rely on them, they in turn must be able to rely on you to be a good employer, which includes fulfilling your duty of paying their wages in full and on time.
You should always make it a priority to ensure your staff are paid; however, if you find that this is not going to be possible, here is what you should do.
You should always make it a priority to ensure your staff are paid; however, if you find that this is not going to be possible, here is what you should do.
Real Business Rescue
Head Office 340, Deansgate, Manchester, M3 4LY, United Kingdom
Real Business Rescue specialise in a wide variety of services including company debts, liquidation and closure, restructuring and rescue and specialist business advisory for a wide variety of industries and sectors throughout the UK. We cater for businesses and organisations that require assistance with their insolvency issues during COVID-19 and can offer expert advice across a broad range of professional services.