Companies Act 2014 section 634

Supplemental provisions in relation to section 633 (including requirements for professional indemnity cover)

Section 634 sets out the requirement for prospective liquidators to hold professional indemnity cover, the consequences of ceasing to be qualified, and the Supervisory Authority's powers over liquidator authorisations.

• A person cannot be appointed as a liquidator unless they have professional indemnity cover in place, in the amount and on terms prescribed by the Supervisory Authority, covering civil liability arising from acts or omissions by the person or their agents during the winding up
• If a liquidator ceases to be qualified, they must immediately vacate office and notify the Registrar and the Corporate Enforcement Authority within 2 days, and the court, creditors, or members (depending on the type of winding up) within 14 days
• The Supervisory Authority may attach conditions to, suspend, or withdraw an authorisation granted under paragraph 5 of the Table to section 633, and may levy an annual charge on such liquidators to fund its oversight inquiries
• Acting as a liquidator without the required qualifications or indemnity cover, or failing to vacate office when no longer qualified, is a category 2 offence, while failing to give the required notifications is a category 3 offence