If your company is constantly facing issues and is on the verge of a liquidation process, you need a company liquidator to carry out the procedure smoothly. Moreover, it helps dissolve the company professionally, making sure a fair distribution of the company’s assets takes place among shareholders.
What are the Duties of a Company Liquidator?
• Inventory of company funds
The company’s manager or the company’s board of directors hands over all the information to the liquidator. It includes all the funds, accounts, books, and documents for making an inventory of the company’s funds and obligations.
- Representing the company
The liquidator is responsible for representing the company in court, fulfilling the company’s debts, and selling real estate by public auction. Moreover, he/she might also sell the company’s assets as a whole without taking permission from the partners.
- Notifying the creditors
The company liquidator will inform all the creditors about the opening of the liquidation process along with the acknowledgment of receipt. Furthermore, it invites them to submit their requests and publish the notification in daily local newspapers. Remember that the liquidator will give 45 days for the creditors to submit their reports.
- Depositing debts
The creditors will deposit their debts if they are unable to submit their application within the given time. This is because a sufficient amount of money must be deposited in the treasury of the competent court to proceed with the process. Otherwise, the company will probably decide to postpone the division of its funds until the dispute settles down.
- Preparation of a List
The liquidator will prepare a list upon receiving all the information regarding the company funds, obligations, and budgets. Afterward, he/she will present this list to the company’s manager and the chairman of the board of directors to sign it for approval.
Wrapping it Up
Remember that a company liquidator must perform all his duties responsibly within the specific period. Moreover, if any mistakes are made by the liquidator in the liquidation process, he/she will compensate for them. Hence, it is mandatory for the liquidator to pay attention to all the precise details without missing any information.
