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:

You may also like

The Reason Your Contract is Unenforceable
Here at Norling Law we see a common situation occurring where people have great robust contracts that they have probably spent a bunch of money on to create but those contracts are not enforceable. They can’t be relied upon. Here I [...]
Best Way to set a Solid Foundation to Resolve a Commercial Dispute
Here we outline The Best Way to Set a Solid Foundation to Resolve a Commercial Dispute. Because let’s be fair, sometimes you need to ensure your foundation is SOLID before you build up from that. #Winning #Negotiation #NorlingLaw
No. 1 Reason Why Businesses Fail
What is the #1 Reason that Businesses Fail? Here I tell you what the #1 reason for business failure (Spoiler: Turnover is Overrated!).

Page 14 of 15