The success of the entire liquidation of a company lies on how the liquidator works on it. In any insolvency process, the primary role of industrial liquidators is to ensure that a fair distribution of the company’s assets is done for the benefits of the creditors. Also called insolvency practitioners, these professionals are the ones appointed to act on behalf of the company to rescue it and come up with a better return for the creditors. The officers of the company are also responsible to cooperate with the liquidators during the entire insolvency process. Otherwise, they can face legal charges and be put in jail.
So, how do industrial liquidators are being appointed? Typically, they are appointed at a creditor’s meeting and the appointment usually happens within about 4 months of the winding-up order. If the situation is more complicated, the case may need more than one liquidator to act jointly. Their role will be officially recognized once they are finally appointed in a creditors’ meeting and is officially advertised. The duties of industrial liquidators are not that easy and they have to make sure that they have fully accomplished their responsibilities to make the liquidation work. They are appointed to undertake several duties, which include but not limited to the following:
- Liquidate or realize all the assets of the insolvent company with the best possible price.
- Satisfy any outstanding claims faced by the limited company in accordance with the law.
- Distribute the returns from the assets to the creditors in order of priority and act in their best interests and not that of the directors.
Of the many responsibilities of the industrial liquidators, one of the most important is to maximize the return for the creditors. In fact, they can make actions like applying to the court to reclaim any properties owned by the company that has been disposed of unfairly. These may include some assets sold for less than the market value. So, in essence, whatever it takes to satisfy the creditors, it will be done by the liquidator.