Question

what are the process of trustee at time of liquidation of comany and at time of liquidation of company assets?

Answer 1

a trustee Is a person on a firm that holds and administers property or assets for the benefit of a third party.the trustee has the duty to dispose of the asset at highest possible price to maximize the amount available to creditors.they may also apply to the court to restore property that a bankrupt or company have disposed of in a way that is unfair to their creditors.

a liquidator can take action against directors or former directors personally for the benefit of creditors. the main aim if trustee is to help the third party.so when the time of liquidation of the company the trustee will look at the highest possible way to support or help the trustee.

the trustee will make all appropriate investigations into the bankruptcy and the financial affair of the bankrupt. when the appropriate investigation has taken place and the divisible estate has been realized, the trustee will then with the objective of a ascertaining the divisible value of the bankrupt and then making appropriate distribution to creditors in order yo satisfy the debt.

when doing the liquidation process of asstes the trustee also realizes the assets of an individual in bankruptcy of a company in liquidation for the best possible price. certain items are also excluded from bankrupt estate .although the trustee can sell and replace an individual item if the value is more than a reasonable replacement.some of the excluded item include, tools, vehicle, and item that bankrupt needs to continue there work. also domestic items such as clothing ,furniture,bedding and household equipment necessary for the basic needs of the bankrupt and the family.