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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 practitionerANS-B
Good day sir, what is the difference between a receiver and a liquidator
Also is it still the shareholders or creditors that pick the liquidator eventually?
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?
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?
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