ExpertEasy1 markMultiple Choice
ACCA · Question 43 · Insolvency law
Section A
In a compulsory liquidation, who is automatically appointed as the initial liquidator as soon as the winding-up order is made by the court?
Section A
In a compulsory liquidation, who is automatically appointed as the initial liquidator as soon as the winding-up order is made by the court?
Answer options:
A.
The company's auditor
B.
A private insolvency practitioner chosen by the directors
C.
The Official Receiver
D.
The largest creditor
How to approach this question
Identify the government official who steps in during compulsory liquidation.
Full Answer
C.The Official Receiver✓ Correct
When a court makes a winding-up order (compulsory liquidation), the Official Receiver (a civil servant) is automatically appointed as the liquidator. They may later be replaced by a private insolvency practitioner chosen by the creditors.
Common mistakes
Confusing compulsory liquidation procedures with voluntary liquidation, where members or creditors choose the liquidator initially.
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