9 Main Duties of Liquidator in Winding Up a Company in India are given below:
1. To conduct proceedings in winding up:
The liquidator shall conduct the proceedings in winding up the company and perform such duties in reference thereto as the court may impose. The acts of the liquidator shall be valid, notwithstanding any defect that may afterwards be discovered in his appointment or qualifications (Sec. 457).
Image Source: 185.26.182.219
2. To submit preliminary report:
ADVERTISEMENTS:
Immediately on the receipt of the Statement of Affairs from the directors and within six months after the date of the winding up order, liquidator shall submit to the court a preliminary report with regard to capital issued, subscribed and paid, the estimated amount of assets and liabilities, causes of the failure of the company and whether in his opinion, fraud and punishable offence have been committed by directors and other officers of the company (Sec. 455).
3. Collection and distribution of company’s property:
Immediately after the winding up order is made by the court, all the property and assets of the company shall vest in the liquidator. He shall have the rights to enjoy control on all the properties of the company.
He shall collect all the assets of the company, prepare schedules of creditors and contributories and distribute proportionately the total realisations made by him amongst the creditors (Sec. 456).
4. To obey the order of the court:
Throughout the performance of his duties, Official Liquidator shall not only obey the orders and carry out the advice and directions of the court but shall also care to see that his actions do not come out to be ultra vires the provisions of the company law. He shall carry out his duties most honestly and faithfully. He shall also take into account the directions given to him by the resolutions of the creditors or contributories.
5. Meetings of creditors and contributories:
ADVERTISEMENTS:
The liquidator may call the meetings of creditors and contributories whenever he may deem fit for the purposes of ascertaining their wishes. But he shall have to summon such meetings at such times as the creditors or contributories may by resolution direct or whenever requested in writing to do so [Sec. 460 (3)].
6. To maintain proper books:
The liquidator shall keep, in the manner prescribed, proper books in which he shall cause entries or minutes to be made of the proceedings at meetings and of such other matters as may be prescribed. Any creditor or contributory may, subject to the control of the court, inspect any books personally or by his agent (Sec. 461).
7. To account for money received by him:
Official Liquidator shall pay all cash collections made by him into the public account of India in the Reserve Bank of India. He shall present to the court twice a year an account of his receipts and payments as liquidator.
The account shall be in prescribed form and shall also be verified by a declaration in the prescribed form. The court shall cause the account to be audited in a manner as it thinks fit
8. Appointment of committee of inspection:
ADVERTISEMENTS:
The liquidator will have to appoint a Committee of Inspection to assist him if the court so directs. He should convene a meeting of the creditors within two months from the date of the court’s direction for the purpose of determining who are to be the members of the committee.
He should also within fourteen days of the creditors’ meeting, convene a meeting of the contributories to consider the decision of the creditors’ meeting with respect to the membership of the committee. In case the contributories do not accept die decision of the creditors’ meeting in its entirety, the liquidator should apply to the court for directions regarding the composition of the committee (Sec. 464).
9. Information as to pending liquidation:
If the winding up of a company is not completed within one year after its commencement, the liquidator shall within two months of the expiry of such year and thereafter until the winding up is concluded at intervals of not more than one year, file a statement in the prescribed form and containing the prescribed particulars regarding proceedings in and position of liquidation. The statement should be duly audited by a person qualified to act as an auditor of the company.
