Court Involvement

As a general rule, a liquidator is given wide powers and responsibilities and so it is not necessary to involve the court in a members’ voluntary liquidation. However, during the liquidation a creditor or member may ask a court to address specific questions that arise in the winding up, review the liquidator’s remuneration or exercise any power that a court possesses in a compulsory winding up.

Also, at any time during a members’ voluntary liquidation the liquidator might form the opinion that the company will be unable to pay its debts in full, in which case they must either apply to the court for the official liquidation of the company, appoint a voluntary administrator or convene a meeting of creditors.

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