No initial monetary outlay need to be made i.e. advance payment. No fee is payable by the Petitioner to us for such appointment as Liquidator’s remuneration is based on the value of the assets and paid out from the assets of the Respondent Company;
The costs and expenses of winding up incurred by the Petitioner shall be paid out of the assets of the Company pursuant to Section 220 of Companies Act 1965. That means the costs of winding up incurred by the Petitioner to be paid by the Respondent Company from its assets when realised;
The appointment of Liquidator from the Court, there is no Letter of Indemnity to be sought by the Liquidator from the Petitioner, Creditors or Contributories against any actions against him. The Liquidator is not only fills a fiduciary position towards the secured creditors, but his appointment to an officer of Court of such responsibility presupposes that he will discharge his duties in good faith in all transactions for all creditors and/or contributories; and
Upon the pronouncement of the winding up and appointment of the Liquidator by the Court, the Liquidator’s function is to maintain the status quo and preserve the assets of the Respondent Company which the assets are likely to be dissipated or money siphoned off. The assets i.e. land, machinery, stocks, book debts and etc (free from encumbrances or charges) would be made available for distribution to the unsecured creditors and/or contributories pursuant to Section 292 of Companies Act, 1965 when the assets including but not limited to the debts owing to the Respondent Company have been realised and/or collected by the Liquidator.
Last edited 28 August 2014
