AMITY LAW SCHOOL

'' Cross Border Terrorism - Globalization Cause and Cure ''

SUBMITTED BY- SUBMITTED TO-

NITHYAVENDAN S DR. ASHU MAHARSHI

Conflict of Interest - Removal of Liquidator

A liquidator's primary objective is to collect and realise the company's assets for the benefit of those
interested in its winding up. The liquidator is either regarded as a court officer, in the case of a
compulsory winding up, or an agent of the company in the case of a voluntary winding up.

As the agent of the company, the liquidator occupies a fiduciary position in some respects. As such, the
liquidator has a duty to act honestly in the exercise of their powers for the proper purpose for which they
are conferred and not for any private or collateral purpose.

Importantly, liquidators must not allow their private interests to come into conflict with their duty as a
liquidator. They must act with complete impartiality at all times in relation to the various persons
interested in the property and liabilities of the company.

The overriding consideration for a liquidator must always be the promotion of the best interests of all the
individuals whose competing interests are involved in the winding up. There should be no preference -
perceived or otherwise - for or against any individual whatsoever. In general, the liquidator has a duty to
the whole body of shareholders, to the whole body of creditors, and to the court.

A liquidator's failure to observe complete impartiality in the exercise of its duties may give rise to a
perception of a conflict of interest that warrants removal of that liquidator.