Enter to open, tab to navigate, enter to select
Liquidator
Practical Law ANZ Glossary w-004-5328 (Approx. 4 pages)
Glossary
Liquidator
An insolvency practitioner who is appointed to administer the liquidation (or winding up) of a company. A liquidator is most commonly appointed in one of the following circumstances:
- Voluntarily by the company itself, where it is either:
- solvent (by a members' voluntary winding up (MVL)); or
- insolvent (by a creditors' voluntary winding up (CVL), and in some circumstances the simplified liquidation process may be adopted by the liquidator within the CVL).
- By court order on the application of a creditor after non-compliance with a statutory demand (a compulsory winding up).
- At the end of a period of voluntary administration where the continuation of the company is not financially viable and creditors have resolved that the company be wound up or where a deed of company arrangement (DOCA) has been terminated.
In an insolvent winding up, the liquidator's role is to take control of the company, wind down the company's business, investigate the circumstances which preceded the liquidation, recover and realise the company's assets (if any), distribute the assets (proceeds of sale) amongst creditors and deregister the company. In carrying out those functions, the liquidator has broad powers under Chapter 5 of the Corporations Act 2001 (Cth) (CA 2001), in particular under section 477 and 506(1)(b) of the CA 2001.
Commonly, multiple practitioners will be appointed on a joint and several basis for convenience and to expedite the conduct of the liquidation (a joint and several appointment is permitted by section 530, CA 2001).
For further information, see: