9. Approved liquidators Flashcards
- Approved liquidators
- public accountants and non-public Accountants
General overview
[9.01] Generally, an approved liquidator has to satisfy the Registrar of Public Accountants as to his experience and capacity. There are two categories of approved liquidators, viz. public accountants and non-public accountants. An applicant who falls within the “public accountant” category has to have the relevant audit or liquidation work experience and obtained the report of two referees, one of whom is an approved liquidator who has supervised his work. Non-public accountants who apply to be an approved liquidator must have had three continuous years of insolvency administration, of which two years must be in a managerial or supervisory capacity. Similarly, the applicant has to obtain the report of two referees, one of whom must be an approved liquidator who has supervised his work. They need to be a “fit and proper” person with a clean record. The details can be found in the URL link below on the ACRA website.
Approved liquidator
- collecting all co’s assets and settling all claims against the company before putting co into dissolution.
[9.02] Section 9 provides for the qualifications required for any person to be appointed as an approved liquidator. A liquidator is an officer appointed when a company goes into winding up or liquidation. He is responsible for collecting all of the company’s assets and settling all claims against the company before putting the company into dissolution.
Compulsory winding up
- must be done by approved liquidator
[9.03] A person must be an approved liquidator if he is to be appointed as a liquidator for compulsory winding up (by the court or creditors).
Voluntary winding up
- need not by approved liquidator
[9.04] If he is only performing voluntary winding up (by members or creditors), he need not be registered as an approved liquidator.
Application to ACRA to be an approved liquidator
[9.05] An application has to be made to ACRA for approval to act as a liquidator of a company. All the information concerning who may apply to be an approved liquidator can be found at ACRA’s official website at , effective as at May 31, 2017. Each certificate of approval will be valid for a term of three years from the date of its issue, subject to renewal.
