WINDING UP

247
experience of a professional man is desirable in the interests of
the company. Perhaps a fair statement is that in all cases
where an ordinarily capable and reasonable individual
would employ an agent, e.g. an auctioneer, or a broker, or a
solicitor, the liquidator may do the same. And he may pay
them reasonable remuneration for their services. It is in
the case of sales of the company’s more important assets
that professional services are most likely to be required; but
the advice of a solicitor may often be properly sought in
almost every phase of a winding up. When dealing with
the company’s property and when employing agents to act
for him, the liquidator should bear in mind the provisions of
Rules 158 to 160 (see pp. 237 and 238 supra).

In connection with the realisation of the company’s assets,
the important powers conferred upon the liquidator by the
combined effect of ss. 214 and 252 of the Act must be noticed.
S. 214 empowers the Court to summon before it any officer of
the company or person known or suspected to have in his
possession any of the property of the company, or supposed
to be indebted to the company, or any person whom the
Court deems capable of giving information concerning the
trade, dealings, affairs, or property of the company.” And
any person so summoned may be required to produce books,
&c. In a proper case, therefore, if the liquidator suspects
that any of the company’s property is being kept back,
whether by the company’s officials or other persons, or if he
has reason to suppose that there has been fraud in the pro-
motion of the company, and that certain persons have
received moneys which really belong to the company, he
will make application to the Court, under s. 252, for an order
for the examination (called private examination, in contra-
distinction to the public examination in winding up by the
Court) of any one who will voluntarily give, or from whom
can be extracted, information as to the existence of assets, or
information on which to ground misfeasance proceedings.

With reference to misfeasance proceedings, these are pro-
vided for by s. 276, their object being to compel any delinquent
promoter or officer of a company to make restitution of any
money or property of the company improperly applied or
retained, or to make good any default. If misfeasance pro-
ceedings require to be taken, the liquidator will invariably
employ a solicitor, as indeed he will generally properly do in
case of any application under s. 252. With reference to such
applications, it must not be forgotten that, although in the
majority of instances they are made by the liquidator, yet any
contributory or any creditor may similarly apply.

Private
Examina-
lions.