Rights and Duties of Liquidator
Rights of Liquidator
a) On behalf of the company, to initiate or defend a legal action.
b) When necessary, auction or sell all movable and immovable assets of the company.
c) Resolve all debts and liabilities of the company and call on shares that are not fully paid up.
d) Issue, approve, or endorse promissory notes and bills of exchange in the company’s name.
e) Upon approval from the office, he is permitted to mortgage the assets of the company to raise funds for the liquidation expenses.
f) Making arrangements with creditors who make claims or settle loans or compromises.
g) The appointment of employees who will assist him/her if needed.
h) Liquidators are entitled to remuneration after the liquidation is completed.
i) In the case of a liquidation, the liquidator has the right to take custody of the company’s books of accounts and assets.
Duties of Liquidator
a) It is the liquidator’s responsibility to maintain accurate minutes of meetings he convenes.
b) A company’s position should be disclosed to creditors, as well as the ability of the company to pay creditors back.
c) All actions must be performed within the prescribed legal boundaries.
d) The company should be liquidated in a manner as profitable as possible by performing only those parts of its business that are necessary.
e) Accounts for the income and expenditures incurred during the process of liquidation must be prepared by the liquidator and submitted timely to the office.
f) During the first six months after the liquidator’s appointment, he is required to provide shareholders with progress reports on the liquidation process.
g) In order to distribute the remaining assets of the company to the shareholders, he must convene the general meeting of the shareholders after realizing all assets and paying out all debt and liabilities to creditors.