In the majority of cases, a liquidator is appointed and is obliged to file accounts under the provisions of the Companies Act.The company is dissolved with an effective date three months from the date of registration of the final documents, or when the court orders its dissolution after winding up by an official liquidator.The Process of Liquidating A liquidator will be the representative of the company to the public and the Court.The liquidator will bear the responsibility to settle all remaining debts of the company and sell its movable and immovable assets in auctions or; in any manner unless is it agreed in the partners’ resolution or Court order to sell such assets in a set way.Further, the partners of the company should appoint a liquidator and determine the manner of liquidation notwithstanding that no partner shall be entitled to his shares from the capital of the entity until all debts get settled.It is important to note that the powers of the management, board of directors who represent the company shall end from the date of appointing the liquidator(s), or to the limit where the liquidator(s) finds it necessary to keep the works of liquidation in order.
Once the process is concluded, the liquidator must submit his final report of liquidation to be approved by the partners or Court.The CRO cannot answer any questions regarding the qualifications. There are five general categories for appointment.1. Person qualified under the laws of another EEA State5.Persons with practical experience of windings up and knowledge of relevant law.This statute amended the major portion of the law governing legal entities in the country’s mainland.The Companies Law has also focused on the provisions of liquidation which we will shed light on, but first, we will demonstrate the main reasons of liquidating a company as per the said law.
The liquidator(s) can be appointed by: A partner’s resolution framed in the general assembly should mention the name(s) of the Liquidators, a method of liquidation and fees of liquidator(s); provided that they are not the current auditor of the company or has audited the company in the last five years.