242 SECRETARIAL PRACTICE
reasonable compromise can be arrived at, the question will
have to be decided, the obvious course being for the liquidator
to apply to the Court, under s. 252 of the Act, for an order
for the delivery up to him of the documents, when the Court
will adjudicate upon the matter. But in the meantime, if
the possession of the documents is necessary for the purposes
of the winding up, it is advisable for the liquidator to pay the
amount claimed to an independent third party, or to a joint
account, pending the decision of the question, and thus to
obtain delivery. If the lien appears, on due examination,
to be valid, and the documents are necessary, the liquidator
should if possible pay the amount due, or undertake to do
so, out of the first available assets. If the lien is claimed
by a solicitor, it may be desirable to have the bill taxed,
delivery being generally obtained by paying the money
claimed into Court, pending the taxation.

After taking possession, or taking all needful and possible
steps towards taking possession, of the company’s books and
documents, the liquidator will then obtain possession, as
far as he can, of the other property of the company. This
does not mean, of course, that he is to have the land and
buildings (if any) of the company conveyed to him, or any of
the chattels of the company formally made over to him.
He will take possession by assuming the control over them.
For example, he will assume the control of the company’s
business, putting himself into the position formerly occupied
by the company. He will assume the control of the com-
pany’s stock and other assets of its business, thus virtually
stepping into the shoes of the company. It must never be
forgotten that the corporate state and all the corporate
powers of the company still continue, the liquidator being,
as stated before, the company’s agent for the purpose of
winding up its affairs.

The liquidator, however, cannot assume the control of
some of the company’s property, or in any way obtain
physical possession of it. He can, e.g. have no physical control
over the book debts of the company, or of any property of the
company which has been taken possession of, as is frequently
the case, by mortgagees, or by a receiver on their behalf.
His duty in these cases is to give notice to the debtors, or
the mortgagees, or receiver, as the case may be, of the fact
that the company is in voluntary liquidation. and that he is
the liquidator.

Disclaimer In taking possession, special care is necessary in the case of
of Onerous leasehold property. If the company is insolvent, it is neces-
Property.  o5rv to inquire whether the retention of the leaseholds is