Companies Act 2014 section 588

Appointment of liquidator

Section 588 deals with how a liquidator is appointed in a creditors' voluntary winding up, including what happens when the creditors and the company nominate different people for the role.

• Both creditors and the company may nominate a liquidator at their respective meetings, but the creditors' nominee takes priority where different persons are nominated
• If the company's nominee has already taken office before the creditors nominate a different person, the company's nominee must vacate the role and has only restricted powers in the interim period
• Any director, member or creditor may apply to the court within 14 days of the creditors' nomination to seek an alternative appointment, including the company's nominee acting alone, jointly, or a third party instead
• A resolution to appoint the creditors' nominee as liquidator is passed when a majority in value of the creditors present and voting approve it