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Roles of Liquidator in liquidation of company

  • Liquidation, also referred to as "winding up", is the process by which a company's assets are liquidated and the company closed or deregistered
  • The liquidator is appointed, either by the shareholders or the court. The liquidator represents the interests of all creditors.
  • The liquidator shall conduct the proceedings in winding up the company and perform such duties in reference thereto as the court may impose
  • Liquidator shall submit to the court a preliminary report with regard to capital issued, subscribed and paid, the estimated amount of assets and liabilities
  • Reports causes of the failure of the company and whether in his opinion, fraud and punishable offense have been committed by directors and other officers
  • He shall collect all the assets of the company, prepare schedules of creditors and contributories and distribute proportionately the total realisations
  • Throughout the performance of his duties, Official Liquidator should obey the orders and carry out the advice and directions of the court
  • The liquidator may call the meetings of creditors and contributories whenever he may deem fit for the purposes of ascertaining their wishes.
  • The liquidator shall keep, in the manner prescribed, proper books in which he shall cause entries or minutes to be made of the proceedings at meetings
  • Official Liquidator shall pay all cash collections made by him into the public account of India in the Reserve Bank of India.
  • The liquidator will have to appoint a Committee of Inspection to assist him if the court so directs.

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