Removal of liquidator by the court
Published by a LexisNexis Restructuring & Insolvency expert
Practice notesRemoval of liquidator by the court
Published by a LexisNexis Restructuring & Insolvency expert
Practice notes
In compulsory liquidation, a liquidator may be removed from office by the court.
In voluntary liquidation, the court may, if good cause is shown, remove a liquidator and appoint another.
While section 172(2) of the Insolvency Act 1986 (IA 1986) (which applies to compulsory liquidation) and IA 1986, s 108 (which applies to voluntary liquidation) are worded differently, the same criteria applies namely that good cause must be shown to obtain a removal order.
Applicants
IA 1986, ss 108 and 172(2) do not clarify who can apply for removal.
The court will determine whether an applicant has sufficient interest to make the application.
The applicant must demonstrate that they are qualified to make the application and are a proper person to do so in that they have a legitimate interest in the relief sought.
While a creditor will qualify, a contributory who is fully paid up will not as they have no interest in the outcome of the liquidation. If a company is insolvent then a contributory will also have no interest.
Applications
Access this content for free with a 7 day trial of LexisNexis and benefit from:
- Instant clarification on points of law
- Smart search
- Workflow tools
- 42 practice areas
Get your quote today and take step closer to being able to benefit from:
- Instant clarification on points of law
- Smart search
- Workflow tools
- 36 practice areas
Get a LexisNexis quote
* denotes a required field
To view the latest version of this document and thousands of others like it,
sign-in with LexisNexis or register for a free trial.
CONTACT US
