Compulsory Liquidation is an application where the Creditor, of the Debtor Company, applies to the High Court, for an order to Liquidate the Debtor Company in question.
The debt must be a liquid claim, for example, goods delivered and received, but not paid, or a loan to the debtor company. This is a High Court application, and the Company will be placed in the hands of the Master of the High Court who will appoint a Liquidator to deal with the administration of the Insolvent Company’s Estate.
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