Question

Write a short note
Appointment of liquidators​

Answer 1

Answer:

In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution. Liquidator is a person officially appointed to 'liquidate' a company or firm. Their duty is to ascertain and settle the liabilities of a company or a firm. If there are any surplus assets,they are distributed to the contributories.

Explanation:

In English law, the term "liquidator" was first used in the Joint Stock Companies Act 1856.[1] Prior to that time, the equivalent role was fulfilled by "official managers" pursuant to the amendments to the Joint Stock Companies Winding-Up Act 1844 passed in 1848 - 1849.

To assess all debts and decide which should be repaid in full or in part. In some cases, claims can be rejectedBring to an end any outstanding contracts or legal disputesSeek valuations for company assets to maximise returns for creditorsClosely inspect the restoration of property that may have been sold at undervalueKeep creditors informed and involved in the decision-making process where appropriate.Communicate how creditor claims are progressing, the reasons why the company failed as well as details about the redistribution of assetsDistribute funds to creditors fairly, taking into account the repayment structure which begins with the fees and expenses of the liquidation process itselfInterview and report on the factors that led to the company’s demise and liquidation. Report to the Secretary of State if he or she identifies director misconduct or fraudDissolve the company.