Compulsory Liquidation Administration

Compulsory Liquidation Administration is a legal process where a company that cannot pay its debts is forced to shut down by a court order. In this process, the company's assets are sold off to repay creditors. This typically happens when creditors apply to the court because the company owes them money and cannot meet its financial obligations. A liquidator is appointed to manage the process, ensuring that any remaining assets are distributed fairly to creditors according to legal priorities. Ultimately, this marks the end of the company's operations.