273. Exercise and control of liquidator’s powers Flashcards
- Exercise and control of liquidator’s powers
General provisions
[273.01] Basically, the liquidator shall use his own discretion in the management of the affairs and property of the company and the distribution of its assets: s 273(4). The function and duties of the liquidator are enunciated in the provisions of the Act and many cases. On a broad brush, 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 were 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
