Removal of Liquidators
We assist creditors in removing the liquidator of a company where they believe the liquidator is not acting expeditiously and in the best interest of the creditors.
A general meeting to remove a liquidator can be requested by any creditor who is owed at least 10% of the company's total debts. The creditors will thereafter be required to vote on a motion to remove the liquidator and, if appropriate, to appoint an alternative.
A liquidator can be removed if a majority of the creditors in value (i.e. creditors representing 51% of the total company debts) vote to remove and/or replace the current liquidator. A vote to remove a liquidator must take place at a general meeting of the creditors which has been called for that specific purpose.
We are able to assist minority creditors in obtaining support for a proposed resolution to remove a liquidator and to comply with the legal formalities of calling a creditors' meeting to put your resolution into effect.
You are entitled to information regarding the liquidators' costs and expenses if you are owed %% or more of the company's total debts. You do not require the Court's permission to obtain this information and it is usually a case of writing to the liquidator and requesting reasonable information on his costs. We can help you with this.
If you are owed less than 5% of the company's total debts then you can still obtain costs information from the liquidator but you will need to request this information jointly with another creditor to increase your share above the 5% threshold. If you cannot persuade another creditor to assist then you would need the permission of the Court.
You will only be able to formally challenge the liquidator's remuneration if you either alone, or collectively with other creditors, exceed 10% in value of the total creditor claims. Any challenge to the liquidator's remuneration must be brought within 8 weeks of you receiving the relevant report.
Please note that we do not act for insolvency practitioners and therefore you will have the comfort of knowing we are on your side.