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If you are a Director or creditor of an insolvent company, Oliver Elliot can help you address your concerns arising from Voluntary Liquidator Powers And Duties.

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The powers and duties of a voluntary liquidator are set out in Sections 165 and 166 of the Insolvency Act 1986.

Section 165 Of The Insolvency Act 1986

(1) This section has effect where a company is being wound up voluntarily, but subject to section 166 below in the case of a creditor’s voluntary winding up.

(2) The liquidator may exercise any of the powers specified in Parts 1 to 3 of Schedule 4.

(4) The liquidator may—

(a) exercise the court’s power of settling a list of contributories (which list is prima facie evidence of the liability of the persons named in it to be contributories),

(b) exercise the court’s power of making calls,

(c) summon general meetings of the company for the purpose of obtaining its sanction by special resolution or for any other purpose he may think fit.

(5) The liquidator shall pay the company’s debts and adjust the rights of the contributories among themselves.

(6) Where the liquidator in exercise of the powers conferred on him by this Act disposes of any property of the company to a person who is connected with the company (within the meaning of section 249 in Part VII), he shall, if there is for the time being a liquidation committee, give notice to the committee of that exercise of his powers.

Section 165 of the Insolvency Act 1986

Section 166 Of The Insolvency Act 1986

(1) This section applies where, in the case of a creditors’ voluntary winding up, a liquidator has been nominated by the company.

(1A) The exercise by the liquidator of the power specified in paragraph 6 of Schedule 4 to this Act (power to sell any of the company’s property) shall not be challengeable on the ground of any prior inhibition.

(2) The powers conferred on the liquidator by section 165 shall not be exercised, except with the sanction of the court, before—

(a) the company’s creditors under section 100 nominate a person to be liquidator, or

(b) the procedure by which the company’s creditors were to have made such a nomination concludes without a nomination having been made.

(3) Subsection (2) does not apply in relation to the power of the liquidator—

(a) to take into his custody or under his control all the property to which the company is or appears to be entitled;

(b) to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of; and

(c) to do all such other things as may be necessary for the protection of the company’s assets.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If the directors fail to comply with—

( a)section 99(1), (2) or (2A), or

(b)section 100(1B),]the liquidator shall, within 7 days of the relevant day, apply to the court for directions as to the manner in which that default is to be remedied.

(6) “The relevant day” means the day on which the liquidator was nominated by the company or the day on which he first became aware of the default, whichever is the later.

(7) If the liquidator without reasonable excuse fails to comply with this section, he is liable to a fine.

Section 166 of the Insolvency Act 1986

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Disclaimer: Voluntary Liquidator Powers And Duties

This page is not legal advice and should not be relied upon as such. This page 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.