Roles of a Commercial Liquidator and Why You Should Have One
A company that goes into liquidation or forced into the process by the court is going to require the services of a professional commercial liquidator to ensure smooth running of the process. A commercial liquidator is often tasked with the responsibility of managing the entire liquidation process making sure the assets are fairly distribute for the benefit of the company’s creditors. Commercial liquidators play significant roles in the distribution process which is why you should have when undergoing a liquidation process. The specific duties and roles of a commercial liquidator during the process include but not limited to the following.
For a company undergoing liquidation because of debts, it is the liquidator’s responsibility to assess all of them and decide which should be paid in full or in part. Paying the total amount owed to all the creditors may be difficult sometimes, plus some claims may be rejected. This is one of the tasks that a commercial liquidator is trusted with during the process. Bringing an end to any outstanding contracts or disputes between the company and suppliers is another reason to have a commercial liquidator. If there is any vendor or distributor who is still contracted to the company undergoing liquidation, this professional sees to the termination of the contract.
When the company’s assets are being sold to pay the creditors, the best possible price should be achieved, which is where a commercial liquidator comes in. they are in charge of seeking valuations of the assets to ensure the returns are maximized. In case there are company’s assets that were sold at a lower price, a liquidator should monitor their restoration to ensure the company is getting the right amount for them. For a company undergoing liquidation process, someone is needed to keep the creditors informed and involved in every decision being made and to get their opinion when necessary, which is where a commercial liquidator comes in.
In case the company is undergoing liquidation with outstanding claims against it, a professional liquidator is needed to address them. He or she is to oversee the settling of the outstanding claims against the company as directed by the law. A commercial liquidator is usually needed to ensure the distribution of returns to the company’s creditors in order of priority; they decide which creditor to compensate first and the ones to wait.
When a company fails, a lot of people are interested in knowing why and whether there was fraud or misconduct involved. A commercial liquidator conducts interviews to determine and report the factors that may have led to the demise and liquidation of the company. It is their responsibility to identify the responsible parties and see to it that they are brought to justice. Dissolving the company is one of the responsibilities and reasons why you need the services of a commercial liquidator. Finally, fair they are needed to ensure fair distribution of funds to creditors with respect to the repayment structure. These are the roles and reasons for having a commercial liquidator.