In a compulsory liquidation, who officially appoints the liquidator?
Answer options:
A.
The shareholders
B.
The directors
C.
The Court
D.
The Registrar of Companies
How to approach this question
Identify the authority that oversees a compulsory winding up process.
Full Answer
C.The Court✓ Correct
A compulsory liquidation is a court-driven process. The court makes the winding-up order and the Official Receiver (an officer of the court) automatically becomes the initial liquidator, though an insolvency practitioner may be appointed later.
Common mistakes
Confusing compulsory liquidation with voluntary liquidation.
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