Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Voluntary Liquidation

Liquidator Ritu Nair conducts the voluntary liquidation of Orchid Foods Ltd. From where is her fee for conducting the liquidation proceedings paid, as the Code is applied to such proceedings?

The liquidator's fee is paid from the proceeds of the liquidation estate under section 53. Section 34(9) provides this, and it applies to voluntary liquidation through section 59(6). The fee is not met by directors, shareholders or the Registrar.

  1. AFrom the proceeds of the liquidation estate under section 53Correct
  2. BPersonally by the directors of the company
  3. CFrom the Registrar of Companies' fund
  4. DFrom the shareholders as a separate call on shares

Explanation

Section 34(9) provides that the liquidator's fee is paid from the proceeds of the liquidation estate under section 53, and section 59(6) applies sections 35 to 53 to voluntary liquidation. Fee amount and proportion to asset value are as specified by the Board, not charged to directors or members.

Did you get it right without looking?

One question tells you little. A timed set on Voluntary Liquidation shows your real accuracy, how long you take and where you lose marks.

Practise Voluntary LiquidationFree diagnostic mock

More Voluntary Liquidation questions