Liquidator Duties
The principle duties of
a liquidator are:
Powers
Same pro
Once liquidator is
a
·
Collecting the
company's assets and
voluntary an
take
appointed they must protecting them Some are
into their
custody
or under
·
Drawing up lists creditors and
of a committee
their control:the seal, contributories
Carryin
·
books and records ofthe
Realising assets
·
·
Tobring
company and
all the ·
Seeking court directions on disputed company's n
property to which the matters ·
To carr
to
company is or
appears
·
Paying creditors and
off
distributing the so far as
ne
be entitled surplus amongst members of
the
company winding up
·
To
pay
Additional duties:
To report
1.
periodically
to the creditors There are
Types of
liquidation and the company law authorities
11. To initiate for restriction of
prior sancti
proceedings ·
To sell
a
voluntary:where either directors for insolvent companies To execu
·
·
the members (the i. To report offences the to To draw
company against company
·
must be solvent) or creditors either the DPP or DCE ·
To borro
of resolve to
a
company
end the life of
a
company.
The newly appointed "official liquidator"
The involvement of to the CRO
the must, within 21 days, publish
courts in this type of Gazette a notice of their appointment and
Liquidation is minimal. deliver to the Registrar the order appointing
This is a relatively cheap them
and quick way of winding
up Must account to the
company any profits
which is made as a result of
them
holding
·
OFficial/Involuntary: office.
This is done
by order of Therefore, the liquidator has to respect all
the duties thatarise under a
the court.
fiduciary
The court order this relationship
may
on
insolvency grounds or
on
justand equitable Courtnoted that liquidators owe
grounds
where the
company Fiduciary duties to the company and not the
The principle duties of
a liquidator are:
Powers
Same pro
Once liquidator is
a
·
Collecting the
company's assets and
voluntary an
take
appointed they must protecting them Some are
into their
custody
or under
·
Drawing up lists creditors and
of a committee
their control:the seal, contributories
Carryin
·
books and records ofthe
Realising assets
·
·
Tobring
company and
all the ·
Seeking court directions on disputed company's n
property to which the matters ·
To carr
to
company is or
appears
·
Paying creditors and
off
distributing the so far as
ne
be entitled surplus amongst members of
the
company winding up
·
To
pay
Additional duties:
To report
1.
periodically
to the creditors There are
Types of
liquidation and the company law authorities
11. To initiate for restriction of
prior sancti
proceedings ·
To sell
a
voluntary:where either directors for insolvent companies To execu
·
·
the members (the i. To report offences the to To draw
company against company
·
must be solvent) or creditors either the DPP or DCE ·
To borro
of resolve to
a
company
end the life of
a
company.
The newly appointed "official liquidator"
The involvement of to the CRO
the must, within 21 days, publish
courts in this type of Gazette a notice of their appointment and
Liquidation is minimal. deliver to the Registrar the order appointing
This is a relatively cheap them
and quick way of winding
up Must account to the
company any profits
which is made as a result of
them
holding
·
OFficial/Involuntary: office.
This is done
by order of Therefore, the liquidator has to respect all
the duties thatarise under a
the court.
fiduciary
The court order this relationship
may
on
insolvency grounds or
on
justand equitable Courtnoted that liquidators owe
grounds
where the
company Fiduciary duties to the company and not the
