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Liquidator vs Official Receiver - The differences

Difference appointing our appointed “Liquidator” and the “Official Receiver”?

  • Is your company Insolvent or Solvent? If your company is struggling to pay bills etc., then the company is Insolvent by “Cash Flow“. Further, if a Winding Up Order is issued and no action taken to defend it, then the court appoints the “Official receiver” to commence Liquidating your company. It is the duty of the “Official Receiver” to first pay Creditors of the company and not shareholders or directors.
  • If the company is “Solvent” and can demonstrate its ability to discharge all its outstanding debts, then it may appoint its own chosen Liquidator to realize and distribute available monies possible via a Members Voluntary Liquidation.
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