Overview Of Records A Liquidator Must Keep

A Liquidator in any insolvent case must keep separate financial records in respect of each company.

Financial records are required to explain the receipts and payments of the Liquidation. This must include an explanation of the source of any receipts and the destination of any payments.

The Liquidator shall submit financial records to the Liquidation Committee when required for inspection.

 

Provision Of Information By A Liquidator

In the case of a Compulsory Liquidation, the Liquidator has to upon receipt of a request for a statement of his receipts and payments from any creditor, contributory or director of the company, supply free of charge to the person making the request, a statement of his receipts and payments during the period of one year ending on the most recent anniversary of his becoming Liquidator.

In the case of a Creditors Voluntary Liquidation, the liquidator shall, on request from any creditor, contributory or director of the company for a copy of a statement for any period, including future periods, send such copy free of charge to the person making the request.

 

Liquidator Records Required When Carrying On A Business

This does not apply in the case of a Members Voluntary Liquidation. But where the Liquidator carries on any business of the company, he has to keep a separate and distinct account of the trading.

He or she must incorporate in the financial records required to be kept, the total weekly amounts of the receipts and payments made by him.

 

Retention And Delivery Of Records A Liquidator Must Keep

All records kept by the Liquidator and any such records received by him or her from a predecessor in that office shall be retained by him for a period of 6 years after he or she concluded his administration of the Liquidation.

Where the Liquidator is succeeded in office by another Liquidator, the records must be delivered to that successor.

 

Provision Of Accounts By Liquidator And Audit Of Accounts

The Liquidator shall, if required by the Secretary of State at any time, send to the Secretary of State an account in relation to the company of the Liquidator’s receipts and payments covering such period as the Secretary of State may direct and such account shall, if so required by the Secretary of State, be certified by the liquidator.

Any account sent to the Secretary of State shall, if he so requires, be audited, but whether or not the Secretary of State requires the account to be audited, the Liquidator shall send to the Secretary of State on demand any documents (including vouchers and bank statements) and any information relating to the account.

 

Production And Inspection Of Records A Liquidator Must Keep

The Liquidator must produce on demand to the Secretary of State, and allow him to inspect, any accounts, books and other records kept by him and to produce and allow inspection of any financial records.

 

Disposal Of Company’s Books, Papers And Other Records

A Liquidator in a Compulsory Liquidation, on the authorisation of the Official Receiver, may at any time sell, destroy or otherwise dispose of the books, papers and other records of the company.

In a Creditors Voluntary Liquidation, the person who was the last Liquidator of a company which has been dissolved may, at any time after the expiration of a period of one year from the date of dissolution, destroy or otherwise dispose of the books, papers and other records of the company.

 

Voluntary Liquidator To Provide Information To Secretary Of State

In the case of a voluntary winding up, a Liquidator must upon the request by the Secretary of State, give the Secretary of State particulars of any money in his hands or under his control representing unclaimed or undistributed assets of the company or dividends or other sums due to any person as a member or former member of the company and such other particulars as the Secretary of State may require.

 

Payment Of Unclaimed Or Undistributed Assets, Dividends Or Other Money

In the case of a company which has been dissolved, any money in the hands of any or any former liquidator at the date of dissolution of the company or his earlier vacation of office, representing unclaimed or undistributed assets of the company or dividends or held by the company in trust in respect of dividends or other sums due to any person as a member or former member of the company, shall forthwith be paid by him into the Insolvency Services Account.

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Disclaimer: Records A Liquidator Must Keep

This page: Records A Liquidator Must Keep is not legal advice and should not be relied upon as such. This article Records A Liquidator Must Keep is provided for information purposes only. You can contact us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.

The source of the information in this article is The Insolvency Regulations 1994.

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