A liquidator is effectively the administrator responsible for the winding-up of a company. Where an individual is declared bankrupt, this role is played by the trustee in bankruptcy.
The responsibilities and powers of a liquidator or trustee are derived from both their role as agent of the company or individual and being an officer of the Court. There is a large body of law (both statute and common law) which govern the obligations and responsibilities of the liquidator or trustee. Amongst other things, the law addresses:
- The requirement for the liquidator or trustee to be independent and impartial;
- the duty of care and diligence required to be exercised and observed, which includes sourcing all forms of assets from an insolvent company including debts and, where applicable director’s assets; and
- avoiding conflicts of interest.
Severe penalties can apply for liquidators and trustees who fail to comply with the obligations and responsibilities imposed by the law.
Our Sydney Insolvency Lawyers have advised and assisted liquidators, as well as bankrupts and insolvent companies.
We have branch offices conveniently positioned across the Sydney metropolitan area including in Hurstville, Parramatta and North Sydney. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
Comments (0)
Add a Comment