The success of the whole process of a liquidation of a company rests on the expertise of the professional liquidators. In any insolvency process, the major role of industrial liquidators is to make sure that there is a fair distribution of the company’s assets in favour of the creditors. Also known as insolvency practitioners, these liquidation professionals are the ones appointed to act on behalf of the company to come up with a decision that benefits the creditors.
The board of the company to be liquidated would be responsible to work with the liquidators all throughout the entire insolvency process. If they refuse to cooperate, they will be put in a situation wherein legal charges will be imposed on them. So, if you are in the process of looking for industrial liquidators, you might be wondering how the appointment is done.
In general, insolvency professionals are appointed and decided upon during a meeting with creditors. Their appointment is often determined within four months of the winding-up order. If the situation appears to be complicated, then it may require more than one liquidator to work together to resolve the liquidation of the company. Once officially appointed, the liquidators can start their job, which is not always easy.
First and foremost, they have to ensure that they have fully performed their duties to make the liquidation work, which includes the following tasks:
Liquidate all the assets of the company with the best possible price
Meet any outstanding claims owed by the company according to the law
Fairly distribute the asset returns to the creditors and decide according to their best interests and not that of the company’s officers
Among the numerous duties of the liquidators, they have to prioritize maximizing the returns to creditors. Whatever is needed to satisfy the creditors, in accordance with the law, must be favoured by the liquidator.
Comments