Once questions are over, the meeting turns to the formal business, being the appointment of the liquidator, whether a liquidation committee should be formed and the basis upon which the liquidator is to be remunerated, including the basis upon which he may charge certain disbursements.
The creditors when voting, may confirm the appointment of the liquidator appointed by the shareholders, but they are also entitled to nominate an alternative, should they so wish. In the event there is more than one nomination, the matter is put to a vote. The value of creditors’ votes is based upon the amount of their respective claims. It follows that the nomination with the largest value of votes is duly appointed as liquidator.
Once appointed, the liquidator will realise the assets of the company, carry out such investigation as is required and ultimately will pay a distribution to creditors, if sufficient funds remain after the costs of liquidation have been met. In the event that the period of the administration of the liquidation exceeds on year, the liquidator must issue progress reports to the shareholders and creditors within two months of the date of each anniversary. Copies of these reports are filed at Companies House.
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