Submitted to: Brig (R) Muhammad Irfan

Submitted by: Sultan Zain Abideen

Roll No# L-1276
Date: 07/04/2020
Subject: Law
Class: M.COM (Morning)
Q.1 what is an official liquidator and enumerate his duties?
Ans:
Liquidator (law):
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has
responsibility for collecting in all of the assets under such circumstances of the company and settling all
claims against the company before putting the company into dissolution. Liquidator is a person officially
appointed to 'liquidate' a company or firm. Their duty is to ascertain and settle the liabilities of a
company or a firm. If there are any surplus assisted are distributed to the contributories.

Duties:
In compulsory liquidation, the liquidator must assume control of all property to which the company
appears to be entitled.[3] The exercise of their powers is subject to the supervision of the court. They
may be compelled to call a meeting of creditors or contributories when requested to do so by those
holding above the statutory minimum

In a voluntary winding-up, the liquidator may exercise the court's power of settling a list of
contributories and of making calls, and he may summon general meetings of the company for any
purpose he thinks fitting a creditor's voluntary winding-up, he must report to the creditor's meeting on
the exercise of his powers.

The liquidator is generally obliged to make returns and accounts, owes fiduciary duties to the company
and should investigate the causes of the company's failure and the conduct of its managers, in the wider
public interest of action being taken against those engaged in commercially culpable conduct. A
liquidator who is appointed to wind-up a failing business should act with professional efficiency and not
exercise the sort of complacency that might have caused the business to decline in the first place.

Q.2 what procedure he will follow to wind up the company?

Ans:
The winding up or liquidation of a company is the process by which a company’s assets are collected and
sold in order to pay its debts. Any monies remaining after all debts, expenses and costs have been paid
off are distributed amongst the shareholders of the company. When the winding up has been
completed, the company is formally dissolved and it ceases to exist.

company can be wound up in one of two ways. First, the Court can compulsorily wind up a company.
Secondly, the shareholders or the creditors of the company can themselves apply to wind up the
company in proceedings known as “voluntary winding up”.

Procedure:
When filing the Originating Summons, the plaintiff or applicant may nominate a person to be appointed
as the liquidator if a winding up order is made by the Court. Before the hearing of the Originating
Summons, the plaintiff or applicant, or his lawyer, must obtain and file the written consent of the
nominated liquidator. If no liquidator is nominated, the Official Receiver is the default liquidator.

 The Originating Summons must be served on the company, the Official Receiver and the
nominated liquidator (if any). In addition, the plaintiff or applicant needs to pay a deposit of
S$10,400.00 to the Official Receiver.
 An advertisement of the Originating Summons is required to be placed in an English and a
Chinese local daily newspaper as well as in the Government Gazette.
 If any person intends to appear at the hearing, a Notice of Intention to Appear in Form 8 must
be given to the plaintiff or applicant, or his lawyer.
 Any person who wishes to oppose the originating summons for winding up may file an affidavit
in opposition at least 7 days before the hearing date.
 The hearing of the originating summons is usually fixed within 6 weeks from the date of filing of
the Originating Summons. Hearings are usually conducted in open court before a High Court
Judge each Friday. The judge may dismiss the Originating Summons, adjourn the hearing or
make a winding up order or an interim order.

Q.3 how will he take custody of a company and what report will be
submitted to court by official liquidator?
Ans
Sec 455 - Report by Official Liquidator.
1) In a case where a winding up order is made, the Official Liquidator shall, as soon as practicable after
receipt of the statement to be submitted under section 454 and not later than six months from the date
of the order or such extended period as may be allowed by the Court, or in a case where the Court
orders that no statement need be submitted, as soon as practicable after the date of the order, submit a
preliminary report to the Court--

 (a) as to the amount of capital issued, subscribed, and paid up, and the estimated amount of
assets and liabilities, giving separately, under the heading of assets, particulars of (i) cash and
negotiable securities ; (ii) debts due from contributories ; (iii) debts due to the company and
securities, if any available in respect thereof ; (iv) movable and immovable properties belonging
to the company ; and (v) unpaid calls ;
 (b) if the company has failed, as to the causes of the failure and
 (c) whether, in his opinion, further inquiry is desirable as to any matter relating to the
promotion, formation, or failure of the company, or the conduct of the business thereof.

(2) The Official Liquidator may also, if he thinks fit, make a further report, or further reports, stating the
manner in which the company was promoted or formed and whether in his opinion any fraud has been
committed by any person in its promotion or formation, or by any officer of the company in relation to
the company since the formation thereof, and any other matters which, in his opinion, it is desirable to
bring to the notice of the Court.
(3) If the Official Liquidator states in any such further report that in his opinion a fraud has been
committed as aforesaid, the Court shall have the further powers provided in section 478.