There are many reasons why you may want a liquidator to be removed.
For example, if you are a creditor:
- You want an aggressive liquidator.
- They will look at the affairs of the company.
- They will investigate overdrawn current accounts.
- They will investigate voidable transactions.
- They will investigate transactions at under value.
- They will investigate breaches of duties.
If you are a shareholder, you want a liquidator:
- Who will do nothing!
- You want to pay a fee to procure this.
The contrast is very stark!
There are things a liquidator CAN do. There are things that a liquidator MUST do.
A liquidator MUST take possession of and protect assets for the benefit of creditors.
A liquidator does not need to litigate, if they don’t wish to.
There are two practical ways in which to remove a liquidator:
- By majority vote of creditors at a creditors meeting; or
- If the liquidator breaches duties, by obtaining a High Court order.
Here Brent Norling of Norling Law and Damien Grant of Waterstone Insolvency discuss the practical pitfalls of appointing a liquidator and how to get a liquidator out.
This video will be useful for anyone considering appointing a liquidator or who wants to get a liquidator out of office.
At Norling Law, we offer a free 30-minute legal consultation to anyone needing help in this space. You can book an appointment directly here:
