Official Liquidation

A Court may order a company to be wound up and appoint an Official Liquidator to act:

• If the company is insolvent,
• If the directors/shareholders have acted in their own interests or are in conflict,
• Where the Court is of the opinion that it is just and equitable that the company be wound up.

Any one of the following can apply to the Court for the appointment of an Official Liquidator:

• the company;
• a creditor;
• a shareholder;
• a director.

The Liquidator assumes full control of the company’s affairs. His main task is to realise assets so that the surplus funds can be distributed to creditors. The Liquidator may continue the business of the company to maximise asset values. In addition to realising the company’s assets the Liquidator will investigate:

• insolvent trading,
• certain transactions entered into by the company, and
• the actions of Directors.