Week 12 - The Liquidator

Question 1

Who is the liquidator in compulsory liquidation?

Answer 1

The Official Receiver becomes the liquidator

Question 2

Who is the liquidator in voluntary liquidation?

Answer 2

The liquidator is appointed by shareholders or creditors

Question 3

What are the first 2 things that happen once a liquidator is appointed?

Answer 3

• liquidator assumes powers of the directors
• employees are automatically dismissed

Question 4

What are the final 2 things that happen once a liquidator is appointed?

Answer 4

• liquidator will contact known creditors and advertise in the Gazette
• then gathers all company assets and distributes them in a particular order

Question 5

What is the first role of the liquidator?

Answer 5

Powers of board of directors ceases - control over the company’s assets passes to the liquidator

Question 6

What is the second role of the liquidator?

Answer 6

The liquidator needs to draw up list of creditors: secured, preferential, unsecured, deferred creditors

Question 7

What is the third role of the liquidator?

Answer 7

The liquidator collects all the assets, converts them into cash (liquidates) and distributes proceeds pari passu (equally paid out within order of payments)