Who appoints a Liquidator to an insolvent company?
A company can be wound up by resolution of its directors and shareholders (when done voluntarily), or by the Court if an application is made by one or more creditors.
- If a company is wound up by the Court the applicant must prove the company is insolvent. The Court then appoints a liquidator who is usually nominated by the petitioning creditor or is selected from the court’s list of official liquidators. The Court may also place a company into liquidation when a dispute between shareholders or members is unable to be resolved by any other means.
- If a company is wound up voluntarily by its directors and shareholders then they have the opportunity to select and nominate the liquidator of their choice.
- A liquidator can also be appointed at the end of a Voluntary Administration process by a resolution of creditors.
The liquidation process is almost identical regardless of how it is commenced.
Call us today if you would like to discuss placing your company into liquidation. In most cases we can agree a fixed fee. Call our toll FREE advice line on 1800 210 073.