compulsory winding up order

A compulsory winding up order is a legal process used to dissolve a company when it can no longer pay its debts or operate effectively. This order is typically issued by a court and can be sought by creditors, shareholders, or the company itself. Once the order is granted, a liquidator is appointed to manage the company's assets, settle debts, and distribute any remaining funds to shareholders. The goal is to ensure that the company is fairly and orderly closed, protecting the interests of those owed money and ensuring compliance with legal obligations.