LIQUIDATOR. The person who is ap pointed to wind up a company. His busi ness is to realise the assets and property of the company, and to collect what may be owing from the members, and from the funds so obtained to pay the debts due by the company and to distribute any balance which may remain amongst the members.
R'here there are two liquidators, cheques should be signed by both, unless otherwise authorised by the Court. • A committee of inspection (q.v.) is often appointed to supervise a liquidation.
As to the appointment of liquidators in a voluntary winding up, see WINDING UP VOLUNTARILY ; and in the case of a voluntary liquidation under supervision of the Court, see WINDING UP SUBJECT TO SUPERVISION OF THE COURT.
The powers of liquidators in a winding up by the Court, or compulsory liquidation, is dealt with in the following Section of the Companies (Consolidation) Act, 1908 : " 151. (1) The liquidator in a winding up by the Court shall have power, in the case of a winding up in England with the sanction either of the Court or of the committee of inspection, and in the case of a winding up in Scotland or 1 reland with the sanction of the ourt : • (a) to bring or defend any action or other legal proceeding in the name and on behalf of the company : " (h) to carry on the business of the company, so far as may be necessary for the bene ficial winding up thereof : " (c) in the case of a winding up in England, to employ a solicitor or other agent to take any proceedings or do any business which the liquidator is unable to take or do himself ; but the sanction in this case must be obtained before the employ ment, except in cases of urgency, and in those cases it must be shown that no undue delay took place in obtaining the sanction : (d) in the case of a winding up in Scotland or Ireland, to appoint a solicitor or law agent to assist him in the performance of his duties.
" (2) The liquidator in a up by the Court shall have power, but (subject to the provisions of this Section) in the case of a winding up in Scotland or Ireland only with the sanction of the Court : " (a) To sell the real and personal property, and things in action of the company by public auction or private contract, with power to transfer the whole thereof to any person or company, or to sell the same in parcels : " (b) To do all acts and to execute, in the name and on behalf of the company, all deeds, receipts, and other docu ments, and for that purpose to use, when necessary, the company's seal : " (c) To prove, rank, and claim in the bankruptcy, insolvency, or sequestration of any con tributory, for any balance against his estate, and to receive dividends in the bankruptcy, insolvency, or sequestration in respect of that balance, as a separate debt due from the bankrupt or insolvent, and rateably with the other separate creditors : " (d) To draw, accept, make, and indorse any bill of exchange or promissory note in the name and on behalf of the company, with the same effect with respect to the liability of the company as if the bill or note had been drawn, accepted. made, or
indorsed by or on behalf of the company in the course of its business : " (e) To raise on the security of the assets of the company any money requisite : " (/) To take out in his official name, letters of tion to any deceased butory, and to do in his official name any other act necessary for obtaining ment of any money due from a contributory or his estate which cannot be ently done in the name of the company ; and in all such cases the money due shall, for the purpose of enabling the liquidator to take out the letters of ministration or recover the money, be deemed to be due to the liquidator himself : " (g) To do all such other things as may be necessary for winding up the affairs of the company and distributing its assets." The creditors and contributories shall determine whether or not an application is to be made to the Court to appoint a liquida tor in the place of the official receiver, and to appoint a committee of inspection.