Question

Official liquidators have an important role to play in the winding up of a company.

• A. True
• B. False

Answer 1

The correct option is A True

This statements is True because of the following reasons:

(i) The liquidator is a person who helps the court to complete the liquidation proceedings i.e. in releasing the assets of the company and distributing them among the creditors and contributors most fairly.

(ii) It may be noted that only 'Official Liquidator' can function as liquidator in compulsory winding up of a company under the order of the court and the court has no power to appoint private persons as liquidators.

(iii)The liquidator has to complete the liquidation proceeding in a just and fair manner.

(iv) He has to see that justice is done to the creditors and other connected with the company which is closed down.

(v) The role played by liquidators is responsible and delicate and it need a fairs approach openness and sound judgement.

(vi) Thus, official liquidations have an important role to play in the winding up of a company.