What is the role of a liquidator?

The role of a liquidator is primarily focused on managing the process of winding up a company’s affairs due to insolvency or closure. This includes settling the claims of contributories, which are those who stand to receive some form of financial return from the liquidation process, and collecting the assets of the company. The liquidator is responsible for ensuring that all assets are accounted for, valued, and distributed fairly according to the legal hierarchy of claims, which typically involves paying off creditors before any distributions are made to shareholders.

While dissolving the company entirely is a part of the liquidation process, it is not the primary role of a liquidator. The liquidator's main focus is on the financial aspects of settling debts and managing the company's remaining assets, rather than on simply dissolving the entity. Developing a business recovery plan and overseeing company compliance are roles that may be associated with different processes, such as corporate restructuring, and are not central to the liquidator's duties in winding down a company.