WINDING UP

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by statute upon the liquidator, but it will be found that
incidentally the wide powers expressly specified by the
legislature include numerous minor auxiliary powers.

A liquidator should enter upon his duties at the earliest His Duties.
possible moment after his appointment. His primary duties
are realisation and distribution of assets, and all that he
does will be directed towards these two ends.

One of his earliest duties is prescribed by s. 250 of the Act.
By s. 250 he is bound, under a penalty of £5 per day, within
twenty-one days of his appointment to deliver a notice thereof
to the Registrar in the form prescribed by the Board of Trade;
and, as already mentioned, he must see that the winding up
resolution has been duly advertised in accordance with s. 226.

The liquidator, after his appointment, will immediately
proceed to take possession of the company’s books and
documents. If he is the secretary, he will, probably, have
no difficulty in doing this, as, so far as the books kept at
the registered office of the company are concerned, they will
he ready to hand, whilst, if the company is a trading com-
pany, the ordinary business books will be available at the
place where the company’s business has actually been
carried on. If the liquidator is unconnected with the com-
pany, e.g. a chartered accountant, his labour in ascertaining
that he has control of all the books and documents of the
company, whether at the registered office or elsewhere, will
usually be greater. It is the duty of the liquidator, if he
finds any book or document missing, to ascertain its where-
abouts, or, if he fails to discover books or documents that he
would expect to find, to make inquiries and satisfy himself
as to their existence or non-existence. Practically all of
the company’s books will be of assistance to the liquidator
in the discharge of his duties. For example, the Seal Book,
if one be kept, should contain particulars of documents to
which the common seal has been attached, and will be of use
in enabling the liquidator to ascertain what documents of
importance are in existence.

[n taking possession of the books and documents of the
company, the liquidator may find that some are in the
possession of a solicitor or other person who claims a lien
upon them for money due. The liquidator will then proceed
to inquire whether this lien is valid. If it is obviously in-
valid, e.g. if it is upon certain books which are, by statute,
required to be kept at the registered office of the company—
the Register of Members, for instance—the liquidator must
insist upon the delivery up to him of the books or documents
in question. If the validity of the lien be doubtful, and no

Taking
Possession
of Property