INS1555 - Company liquidation: Compulsory winding up

Liquidation committee

When a liquidator, other than the Official Receiver, is appointed a liquidation committee may be established.

The committee will consist of at least three but not more than five creditors of the company.

The main purposes of a committee are to

• protect and promote the interests of the general body of creditors
• approve the manner in which the liquidator is remunerated
• assist the liquidator in undertaking their duties.

If a committee is not appointed its functions are vested (put in the hands of) the Secretary of State or, in Scotland, the Court.