CORPORATE
LEGAL
Specialists in corporate insolvency.
Legal advice for Liquidators
Introduction
Just as with company directors, the role and responsibility of liquidators has become increasingly specialised over the years. The Companies Act 2014 places further duties and obligations on liquidators. One example of this is the new qualification requirements for appointment as liquidator. Another is the fact that the new legislation removes many of the court applications which a liquidator would previously have been required to make. Instead of making those applications seeking permission from the court to do certain acts, the liquidator is now empowered to do those acts without leave of the court. For instance, a liquidator is now empowered to commence and defend legal proceedings on behalf of the company without first seeking court permission, which was previously required under the old Companies Acts.
These new powers require a liquidator to exercise a great degree of caution. No longer guided by the court, an erroneous exercise of his powers may lead to substantial personal liability. It has therefore become increasingly necessary for liquidators of Irish companies to seek specialist legal advice.
Legal Advice
Our barristers specialise in providing legal advice to liquidators of all types of company (big or small, private or public) in all kinds of liquidations (members' voluntary, creditors' voluntary and compulsory winding up). The kinds of issues which may arise are infinite in scope, but our experience and knowledge of this area means that we can answer any question, meaning that liquidators can rest assured that they are making decisions which are commercially and legally sound.
Since most liquidators are members of approved accountancy bodies, we can accept direct instructions from them in respect of legal Opinions without a solicitor. Please contact us for further information.
Legal representation
In addition to providing legal advice, we also represent liquidators in court proceedings, mediations, negotiations and arbitrations. Court proceedings may range from making routine applications such as fixing a liquidator's remuneration or the restriction of company directors, to more complex proceedings such as reckless trading, proceedings against the company's creditors or a receiver appointed during the litigation. We also represent liquidators who are defendants in proceedings issued against them, for example for breach of duty, negligence or where proceedings are issued against their company by a third party.
The following is a non-exhaustive list of the kinds of proceedings in which we have represented liquidators:
- A liquidator issuing or defending legal proceedings in the name of the company.
- Application by a liquidator for the restriction and disqualification of the company's directors.
- Application for the reversal of certain fraudulent transactions involving the company and its directors.
- Application to the court seeking sanction for the exercise of certain powers of the liquidator or determining certain questions arising in the winding up (section 631 of the Companies Act 2014).
- Application by a liquidator against the company's directors for misfeasance and reckless trading.
- Defending a liquidator against a claim for damages for breach of duty.
- Application by a liquidator fixing his remuneration where no agreement was reached with the company and its creditors.
- Application by a liquidator to compel the company's directors to hand over certain information, including books and records, relating to the company (section 673 of the Companies Act 2014).