What do directors do during a liquidation?

During a liquidation, the directors have no say in the running of the company – they must surrender control to the liquidator.

The directors have certain legal obligations during the liquidation, including:

  • Advising the liquidator of all company assets
  • Delivering the assets to the liquidator
  • Handing over the company’s books and records
  • Providing a report about the company’s business, property and financial position (within five business days in a creditors’ voluntary liquidation or 10 business days in a court liquidation)
  • Responding to all reasonable requests for help by the liquidator
  • Attending a creditors meeting (if required by the liquidator)