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ACCA Applied Skills · Corporate and Business Law (Global) · Insolvency and administration

Dorrin Ltd is in creditors' voluntary liquidation. The members chose Ms Hale as liquidator, but the creditors, at their meeting, nominated Mr Ray. Under the general rule, who acts as liquidator?

Mr Ray acts as liquidator. In a creditors' voluntary liquidation the creditors' nominee generally prevails over the members' choice, although a member or director may apply to the court for a different outcome. Joint appointment does not arise automatically.

  1. AMs Hale, because members appoint the liquidator in every voluntary winding up
  2. BMr Ray, because the creditors' nominee generally prevails unless a court orders otherwiseCorrect
  3. CBoth jointly, because the law requires joint appointments where nominations differ

Explanation

In a creditors' voluntary liquidation the creditors' choice of liquidator generally takes priority over the members' choice. Any member or director may apply to the court to challenge this. Joint appointment is not automatic where nominations differ.

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