LIQUIDATION

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June 21, 2022 at 5:37 pm #659069
Eunice03
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On a compulsory winding up of a company, who will the court usually appoint?
A The auditor of the company
B The Official Receiver
C A qualified insolvency practitioner

ANS-B

Good day sir, what is the difference between a receiver and a liquidator
June 21, 2022 at 5:39 pm #659070
Eunice03
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Also is it still the shareholders or creditors that pick the liquidator eventually?
June 21, 2022 at 8:54 pm #659079
MikeLittle
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A receiver is like a surgeon, trying to save the body (corporate) when it gets into financial trouble

A liquidator is like a Death Sentence – the job of the liquidator is to kill the company

Is that enough for you?
June 21, 2022 at 8:59 pm #659080
MikeLittle
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Sorry, second question!

If it’s a members voluntary winding up, it’s the shareholders that appoint the liquidator

If it’s a creditors voluntary winding up, it’s the creditors that appoint the liquidator

And if it’s a compulsory winding up by order of the court, the court will appoint the Official Receiver to be the provisional liquidator until the creditors of the company have a meeting (called by the OR) and are given the opportunity to appoint their own choice of liquidator (or simply agree to authorise the OR to continue)

OK?
June 22, 2022 at 6:47 pm #659141
Eunice03
- Topics: 40
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I get it now.Thank you very much sir
June 23, 2022 at 8:16 am #659188
MikeLittle
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You’re welcome
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