Companies Act 2014 section 658

Adjustment of rights of contributories

Section 658 deals with the liquidator's duty to adjust the rights of contributories among themselves and to distribute any surplus funds to those entitled to receive them.

• The liquidator is responsible for fairly balancing the rights of all contributories during a winding up
• Any surplus remaining after the company's debts have been paid must be distributed to those with a legitimate entitlement
• This function was previously carried out by the court but has been transferred to the liquidator under the 2014 Act
• The section replaces the equivalent provision formerly contained in section 242 of the Companies Act 1963