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A Liquidator is a person who is appointed to wind up the affairs of a corporate entity. In due course of discharging his or her duties, a liquidator can have some of his or her actions and decisions challenged by the company and its affairs it is dealing with.

Liquidators will have specific duties and responsibilities associated with what they are required to do in respect of the company being wound up. Of course, each duty and responsibility will derive from a power that the liquidator is lawfully granted by a Court, the operation of statute or in the case of a voluntary winding up, the company itself.

Many of the powers, duties and responsibilities of liquidators are outlined in the provisions of the Corporations Act 2001 (Cth). A claim against a liquidator will have to be based on the evidenced breach of any such duties, obligations, responsibilities or the misuse of a power that the liquidator may ordinarily be able to enjoy. Some examples of legislative duties that are associated with the functions of a liquidator, include the following:

  • Various powers under sections 477 and 479 of the Corporations Act 2001 (Cth) in situations of a voluntary or Court appointed winding up;
  • Various duties of the liquidator are outlined in section 496 in situations of a voluntary winding up by members where it becomes apparent that the company appears to be insolvent;
  • Other general powers of the liquidator are listed in section 506, where there is a voluntary winding up by members of the company; and
  • When pooling becomes an issue, the liquidators powers are also affected by the provision of section 579 of the Act;

The Court can remove a liquidator and have him or her replaced with another liquidator under section 503 of the Act. Some of the factors that can play an important role in the disqualification of a liquidator are listed in section 532 of the Act.

Other matters arising under the Act which go to the powers and rights of creditors, employees or the directors of the company in liquidation vis-à-vis the liquidator, may also import various duties and obligations onto the liquidator. These are too numerous to enumerate here and any person who has an interest in the process or outcome of a liquidation should seek appropriate legal advice where he or she believes or thinks that a liquidator may be acting in a manner that is prejudicial or harmful to that person’s legitimate legal interest.

The above is just a selection of some of the main statutory provisions that directly or indirectly affect the powers, duties, obligations and responsibilities of liquidators. Other implied duties may arise under the Act, in delegated legislation or under the principles of common law.

Navado Lawyers & Solicitors is an experienced Bankruptcy & Insolvency Law Firm and can assist you to make a claim against a liquidator. Such claims against a liquidator should not be made without first properly assessing and considering all of the circumstances and the factual matrix, before making a decision as to the merits of any such claim and whether any such claim should be brought.

If you need legal assistance to make a claim against a liquidator, you may wish to speak to a Bankruptcy & Insolvency Solicitor at Navado Lawyers & Solicitors. Our Sydney based Bankruptcy & Insolvency Lawyers can see you in our Sydney CBD head Office or by appointment, at one of our branch offices, details listed under the “Locations” tab. To make an appointment, please contact us by telephone on (02) 9233 4048 or email to

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This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.

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