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I was hoping someone can clarify. Although my exam is tomorrow and would be grateful for an answer soon, I am still keen to know nevertheless it being short notice.
Practice Question 2 of the Liquidation Chapter – The question asks in a creditors’ voluntary winding up the liquidator is appointed y the creditor is the correct answer to it. However in the video lecture the tutor mentions specifically that in a members voluntary winding up, the members appoint the liquidator and in a creditor voluntary winding up the members appoint the liquidator.
No, the members NOMINATE a liquidator but the creditors appoint one. That could be the same liquidator that was nominated by the members … but it could be somebody else (so long as that other person is a QIP)
Ok thank you, so who appoints the liquidator in Members Voluntary Windup situation?
The members. The difference is SOLVENCY
If the company is solvent as at the date of the decision / resolution to liquidate, all creditors will be paid in full so no one is harmed and it’s the members’ choice who is appointed as liquidator
But if the company, at that date, determines that it will not be able to settle all the claims of creditors within 12 months of the commencement of a liquidation, then that group’s interests will be adversely affected. So the right to appoint a liquidated is theirs