11. Disqualification of liquidators

Question 1

11. Disqualification of liquidators
    - undischarged bankrupt
    - offence involving dishonesty punishable with imprisonment of three months or more
    - owes the co or related co amount exceeding $2,500, cannot be liquidator

except with leave of court.

Answer 1

General overview
[11.01] This section lays down the conditions where a person may not act as a liquidator of a corporation. Clearly, an undischarged bankrupt; or a person who has entered into an arrangement with his creditors pursuant to any laws relating to bankruptcy; or who has been convicted of an offence involving dishonesty punishable with imprisonment of three months or more; or who owes the company or any corporation related to that company by virtue of s 6 an amount exceeding $2,500, cannot be a liquidator of any corporation.

[11.02] Except with the leave of the court, no person may act as a liquidator of the company unless he satisfies the criteria stated in s 11(1). The effect of s 11(1)(a) and (c) is that an officer of the company, a partner, employer or employee of an officer of the company, or a partner or employee of an employee of an officer of the company, may act as a liquidator in a members’ voluntary winding up. They may also act as a liquidator in a creditors’ voluntary winding up, if a majority of the creditors in number and value agree by resolution of which seven days’ prior notice had been given to every creditor of a meeting to do so.

Question 2

Officer

Answer 2

[11.03] For the purposes of subsection (1)(c)(i), an officer of a related corporation is deemed to be an officer of the company; or if he has been an officer or promoter of the company or of such corporation within the preceding period of 24 months before he is appointed liquidator of the company.