LIQUIDATOR

Presented by
K. Raima
C0GMBA3048
LIQUIDATION
Liquidation is the process by which a company (or part of a company) is brought to an end, and the
assets and property of the company are redistributed.

LIQUIDATOR
Liquidators are officers appointed when a company goes into winding-up or liquidation who has
responsibility for collecting in all of the assets of the company and settling all claims against the
company before putting the company into dissolution.

PROVISIONAL LIQUIDATION
Provisional liquidation is a process which exists as part of the corporate insolvency laws of a number
of common law jurisdictions whereby after the lodging of a petition for the winding-up of a company
by the court, but before the court hears and determines the petition, the court may appoint a
liquidator.
The Official Liquidator is appointed by the Central Government under
section 448 of the Companies Act, 1956 attached to High Court of the
State for the purpose of conducting liquidation proceedings of those
companies which are ordered to be wound up by the High Court.
Functionally the Official Liquidator is under the supervision and
control of the High Court but administratively is under the control of
the Central Government through the Regional Director.
FUNCTIONS

The Primary function of the Official liquidator is to administrate the assets of

companies under liquidation, sale of the assets and realization of all debts of
companies in liquidation for the purpose of distributing the same among the various
creditors and other shareholders of the companies and to finally dissolve such
companies after the affairs are completely concluded. When a company is put to
winding up by an order of the High Court, the Official Liquidator attached to the said
High Court takes possession of the company’s assets, books of accounts, etc. and
liquidates the company as per the further orders of the High Court. The procedure of
liquidation is prescribed under the Companies (Court) Rules, 1959. These rules are
approved by the Honorable Supreme Court of India and notified by the Central
Government.
DUTIES AND POWERS
The duties and powers of the Official Liquidator as laid down in section 457 of the
Companies Act, 1956 are mainly of, filing of claims against, the debtors for
realization of the debts due to the company, sale of movable and immovable assets of
the company taken possession by the Official Liquidator, institute criminal complaints
and misfeasance proceedings against the former Directors of the company for their
acts and omissions, breach of trust etc., invitation of claims from the creditors,
adjudication of claims and settlement of list of creditors, payment to creditors by way
of dividend and settlement of list of contributories wherever necessary, and payment
of return of capital where the company’s assets exceeded its liability and finally
dissolve the company under section 481 of the Companies Act,1956.
THANK YOU