Commentary

D6.720 Liquidation

Corporate tax
Corporate tax | Commentary

D6.720 Liquidation

Corporate tax | Commentary

Commercial implications of insolvency

D6.720 Liquidation

Status of the liquidator

A liquidator in a compulsory liquidation is an officer of the court1. This means that the rule in Ex parte James2 applies which obliges him to act honourably and fairly; the liquidator should not rely on his strict legal rights when to do so would be regarded as dishonourable. By contrast it has been held that a liquidator in a creditors voluntary liquidation is not an officer of the court and has no such obligation3. A liquidator is an agent for the company4. A liquidator is also the proper officer of the company for tax purposes 5 and is responsible for doing everything that needs to be done by a company under the Taxes

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