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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Liquidator Ms. Rao is filing the final report for Delta Forge Ltd while an avoidance application against a related party is still pending. Under regulation 44A of the Liquidation Process Regulations, what must she do?

With the committee's approval, the liquidator must set out in the application filed along with the final report how pending avoidance or fraudulent or wrongful trading proceedings will be pursued after dissolution or closure of liquidation, and how any proceeds will be distributed, as regulation 44A requires.

  1. AAbandon the proceedings because liquidation is closing
  2. BProvide in the application filed with the final report how the avoidance or fraudulent or wrongful trading proceedings will be pursued after dissolution or closure and how proceeds will be distributed, with the approval of the committeeCorrect
  3. CDistribute any future proceeds to herself as fees
  4. DLeave the matter out because the Board decides later

Explanation

Regulation 44A requires the liquidator, with the approval of the committee, to state in the application along with the final report under regulation 45 how such proceedings will be pursued after dissolution or closure and how proceeds will be distributed. Abandoning or omitting the matter is not provided.

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