Question

1. Discuss five offences that might be committed by the liquidator before and during liquidation.

Answer 1

Offences that might be committed by the liquidator before and during liquidation are as follows-

1. No delivery of property of the company- realizing the assets of the liquidate company and achieving the best possible price is the role of the liquidator, if he or she is not able to do so with fairness and transparency then it is treated as offence.

2. No delivery of books and papers of company- if they fail to acquire and deliver the financial books and important papers then it is consider as an offence.

3. False representation or fraud to creditors of company- liquidator should act in the best interests of the creditors, rather than directors. If he or she fails to do so then it is a offence. At the time of liquidation creditors are completely dependent on the liquidators. So, if they fail to provide correct and complete information to them then it is an offence.

4. If he or she not keeps the authority informed, and failed to meet deadlines for paperwork then it is consider as an offence of the liquidator.

5. Not inspect closely the restoration of property that may have been sold at undervalue, is an offence.

6. No distribute the funds to creditors fairly due to the company's owner pressure.