In the context of voluntary winding up, explain the statutory provisions regarding the
powers of the liquidator which may be exercisable:
i) With the court sanction.
ii) Without the court sanction.
i) In a compulsory winding up, the liquidator including a provisional liquidator exercises the following powers with the sanction of the court or committee of inspection.
To bring or defend actions and legal proceedings in the name and on behalf of the company.
To carry on the business of the company so far as may be necessary for beneficial winding up.
To appoint an advocate to assist him in the performance of his duties.
To pay any classes of creditors in full.
To make any compromise or arrangement with creditors.
To compromise all calls and liabilities to calls, debts and other liabilities.
i) On his own responsibility and without obtaining any sanction the liquidator can:
Sell the property of the company public auction or private contract.
Do all act as and execute, in the name and on behalf of the company all deeds and documents and use the company‟s seal therefore.
Prove, rank and claim in the bankruptcy or insolvency or any contributory.
Draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company.
Raise money on the security of the company‟s assets.
Take out letters of administration to any deceased contributory and to do any other act necessary for obtaining payment of money from a contributory or his estate.
Appoint an agent to do any business which the liquidator cannot do himself.
Do all such other things as are necessary for winding up the affairs of the company and distribution its assets