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Conduct
of the Liquidation | Creditors
Conduct
of the liquidation
The
functions of a liquidator are to:
- realise
the company's assets
- distribute
funds to creditors (when appropriate)
- examine
the validity of any charges over the company's assets
- examine
the conduct of the directors (real, de facto and shadow) and make a
report to the DTI. Also to look for evidence in their conduct of malpractice,
misfeasance, breach of fiduciary duty or wrongful trading
- investigate
for prima facie evidence of fraudulent trading, preferences (of one
or more creditors over others) or transactions at an undervalue
- apply
to the court for restoration of property or for a personal contribution
to the company's assets if evidence of the above is found (assuming
such restoration or contribution cannot be obtained by agreement)
- agree
the claims of creditors
- report
to the liquidation committee at six monthly intervals unless agreed
otherwise
- hold
an annual meeting of creditors
- summon
final meetings of creditors and members to explain the conduct of the
liquidation
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