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Sometimes referred to as a 'voluntary winding-up', this procedure is initiated by the directors and shareholders of a business. CVLS are determined by realisation that the business cannot pay debts as and when they fall due.
Often referred to as a 'winding-up by the court' this procedure is the ultimate sanction against a business that defaults on basic obligations to creditors. The compulsory liquidation is ordered by the court, typically following the petition of a creditor, the business or a shareholder.
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