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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 5Question 43
    Easy1 markMultiple Choice
    Insolvency lawSyllabus GInsolvencyCompulsory Liquidation

    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?

    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.
    Question 42All questionsQuestion 44

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 5

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