Has your company fallen under bankruptcy? If so, you must think about company liquidation. The winding-up of a company makes the owner relief from bankruptcy and stress.

The primary step of winding up a company is welcoming the court-appointed civil Sargent as a liquidator. With the permission of the court, he establishes the liquidation activities of that particular company.

Powers and duties of a liquidator

When the court makes the order of liquidation, it also appoints a civil Sargent against the company. The Sargent has many duties to perform while winding up the company. these can be described as follows.

Assessing the debts

The first task of a liquidator is evaluating all the debts claimed by the debtor and creditor. Determine which can be accepted and which rejected.

Ending the legal disputes

To end the legal conflicts, the liquidator comes with necessary contracts and performs legal actions.

Valuation of assets

One of the critical duties for the liquidator is measuring the values of the specific company’s assets. Thereafter, he concludes whether the asset is enough to repay the company's debt.

Keep up-to-date the creditors

The liquidator has to provide all the necessary information to the creditor. It is another crucial part of the liquidator’s duty.

Make interview and report

To make a report, the liquidator collects all the necessary information from the creditors. Such as how much they claim, showing the accounts, reasons for winding up the company, and so on. With the collected information, the liquidator makes a report.

Distribute assets

After making a report, it comes to the distributing process. The distributing starts by paying fees and expenses of the repayment process. The liquidator distributes the assets to the debtor based on the reports and accounts.

Report on distribution

After distribution, the liquidator makes a report on the distribution amount and process. Thereafter, he submits the report to the general secretary of state.

Needless to say, how much power a liquidator of a company holds. Appointing a liquidator helps the company to make all the legal decisions and actions for the company liquidation.