A liquidator is an authorised licensed insolvency practitioner. Their primary function is to collect the firms’ assets, realise them and then distribute the net realisation proceeds according to a statutory priority order. The liquidator also has to investigate why the firm failed, and take the required action to bring those directors who have acted improperly to justice.
They can require the attendance of anyone who might have or is known to have, company assets in their possession, as well as those who owe the company money. In order to assist with the investigation, the liquidator can ask the court to summon anyone who might have information concerning the company’s affairs, its property and business dealings. The court can also compel the production of company records or relevant documents.
But the liquidator's role can vary slightly depending on which liquidation process they are assigned to.
There are three main types of liquidation processes which Licensed Liquidators deal with:
- Creditors’ Voluntary Liquidation
- Members’ Voluntary Liquidation
- Compulsory Liquidations
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