272. Powers of liquidator Flashcards
- Powers of liquidator
General overview
[272.01] Section 272 sets out the ambit of the liquidator’s powers and duties exercisable with the authority of the court or of the committee of inspection. Subsection (1) provides for the duties of the liquidator in managing the company’s assets, business and affairs for the purpose of the beneficial winding up of the company. Subsection (2) enumerates the powers of the liquidator in achieving the aforesaid objectives. By and large, the main focus of a company and its liquidators once winding up had commenced should be to prevent the fragmentation of its assets and to ensure that the interests of its creditors are protected to the fullest extent. In other words, returns to legitimate creditors should be maximised; the process of collecting assets and returning them to legitimate creditors should be attended to with all practicable speed. Unnecessary costs should not be incurred; liquidators should act in the collective interests of all legitimate stakeholders and not with a view to enhancing their own self-interests or fees
