Question

1. (ii) Explain six powers of a liquidator exercisable without sanction of the court.

Answer 1

Six powers of the liquidator without the sanction of the court are as follows:

· To do acts and to execute in the name and behalf of the company, all receipts, deeds and the documents for the purpose to use, if necessary the company’s seal.

· To prove rank and also claim the insolvency if any contributors, for balance against his estate, or to receive dividends in the time of insolvency, in respect of balance, and separate debt for the insolvent with other creditors.

· To draw make, accept and endorse bill of exchange or the promise note in the name or on the behalf of the company, with same respect and effect to the liability of company as if note or bill had been drawn, made accepted or endorsed on behalf of the company in its business.

· To appoint the agent to do business which liquidator can’t do himself

· To take out the letters of the administration to deceased contributors and to do in his name other act necessary for obtaining the payment or money from the contributory or estate which cannot be done conveniently in company’s name, in these case the money shall due for purpose enabling the liquidator to take the letters out of admin or recover money.

· Distributing assets and do all such things necessary for winding up the affairs of the company