Liquidator (law)

liquidatorliquidatorsprovisional liquidatorcompany liquidatorliquidator’s
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.wikipedia
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United Kingdom insolvency law

UK insolvency lawinsolvency lawinsolvent
In English law, the term "liquidator" was first used in the Joint Stock Companies Act 1856.
The liquidator of Mr Salomon's company sued him to personally pay the outstanding debts of his company, arguing that he should lose the protection of limited liability given that the other shareholders were not genuine investors.

Liquidation

liquidatedvoluntary liquidationliquidate
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.
The court may appoint an official receiver, and one or more liquidators, and has general powers to enable rights and liabilities of claimants and contributories to be settled.

Wrongful trading

negligently trading
Where, during the investigation of the affairs of the company, the liquidator uncovers wrongdoing on the part of the management of the company, he may have power to bring proceedings for wrongful trading or, in extreme cases, for fraudulent trading.
Wrongful trading is an action that can be brought only by a company's liquidator, once it has gone into insolvent liquidation.

Fiduciary

fiduciary dutyfiduciary dutiesfiduciaries
The liquidator is generally obliged to make returns and accounts, owes fiduciary duties to the company and should investigate the causes of the company's failure and the conduct of its managers, in the wider public interest of action being taken against those engaged in commercially culpable conduct.

Unfair preference

fraudulent preferenceVoidable preferencePreferences
The liquidator may also seek to set aside transactions which were entered into by the company in the time immediately preceding the company going into liquidation where he forms the view that they constitute an unfair preference or a transaction at an undervalue.
An unfair preference (or "voidable preference") is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference or simply a preference.

Undervalue transaction

transaction at an undervaluetransactions at an undervaluean undervalue
The liquidator may also seek to set aside transactions which were entered into by the company in the time immediately preceding the company going into liquidation where he forms the view that they constitute an unfair preference or a transaction at an undervalue.
An undervalue transaction is a transaction entered into by a company who subsequently goes into bankruptcy which the court orders be set aside, usually upon the application of a liquidator for the benefit of the debtor's creditors.

Administration (law)

administrationvoluntary administrationwent into administration
External administrators can be appointed either by the company's directors, a secured creditor, or by a court, and include: provisional liquidators, liquidators, voluntary administrators, deed administrators, controllers, and receivers.

Provisional liquidation

provisional liquidatorprovisional liquidators
(The provisional liquidator is appointed to safeguard the assets of the company and maintain the status quo pending the hearing of the petition.) Unlike a conventional liquidator, a provisional liquidator does not assess claims against the company or try to distribute the company's assets to creditors, as the power to realise the assets comes after the court orders a liquidation.

Law

legallawslegal theory
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.

Company

companiesenterpriseenterprises
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.

Dissolution (law)

Dissolveddissolutiondissolve
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.

Joint Stock Companies Act 1856

Companies Act 1856Joint Stock CompaniesJoint Stock Companies Act
In English law, the term "liquidator" was first used in the Joint Stock Companies Act 1856.

Joint Stock Companies Winding-Up Act 1844

Prior to that time, the equivalent role was fulfilled by "official managers" pursuant to the amendments to the Joint Stock Companies Winding-Up Act 1844 passed in 1848 - 1849.

Extraordinary resolution

special resolutionextraordinary vote
Certain powers are generally exercisable without the requirement of any approvals; others may require sanction, either by the court, by an extraordinary resolution (in a members' voluntary winding up) or the liquidation committee or a meeting of the company's creditors .In the United Kingdom, see sections 165-168 of the Insolvency Act 1986

Annual general meeting

AGMgeneral meetingannual meeting
In a voluntary winding-up, the liquidator may exercise the court's power of settling a list of contributories and of making calls, and he may summon general meetings of the company for any purpose he thinks fit.

Fraudulent trading

with intent to defraud creditors
Where, during the investigation of the affairs of the company, the liquidator uncovers wrongdoing on the part of the management of the company, he may have power to bring proceedings for wrongful trading or, in extreme cases, for fraudulent trading.

Champerty and maintenance

champertychampertousmaintenance
However, the liquidator cannot normally enter into a champertous agreement to assign the fruits of an action to a third party offering to finance the litigation, if the right to said action accrued solely as a result of the liquidator's statutory duties, instead of being a right to action that had existed before the liquidator came on the scene.

One.Tel

One.Tel was a group of Australian based telecommunications companies, including principally the publicly listed One.Tel Limited (ACN 068 193 153) established in 1995 soon after deregulation of the Australian telecommunications industry, most of which are currently under external administration by court appointed liquidators.

Re MC Bacon Ltd (No 2)

Re MC Bacon Ltd [1991] Ch 127 is a UK insolvency law case relating specifically to the recovery the legal costs of the liquidator in relation to an application to set aside a floating charge as an unfair preference.

Corporate veil in the United Kingdom

corporate veilpiercing the corporate veil
Unless an administrator (someone like an auditing firm partner, usually appointed by creditors on a company's insolvency) is able to rescue the business, shareholders will lose their money, employees will lose their jobs and a liquidator will be appointed to sell off any remaining assets to distribute as much as possible to unpaid creditors.

Bank of Credit and Commerce International

BCCIBCCI BankBank of Commerce and Credit International
The liquidators, Deloitte & Touche, filed a lawsuit against the bank's auditors, Price Waterhouse and Ernst & Young, which was settled for $175 million in 1998.

1986–87 Middlesbrough F.C. season

1986–8719861986–87
Debts believed to be in the region of £2 million meant the club were forced to call in the provisional liquidator.

1992–93 Birmingham City F.C. season

1992–93
Off the field, the collapse of the Bank of Credit and Commerce International (BCCI) put the club owners' business into receivership; in November 1992 BCCI's liquidator put up for sale their 84% holding in the football club.