In its simplest form, ‘liquidation’ refers to winding up a company by selling off its assets and converting them into cash to pay the company’s secured and unsecured creditors in proportion to the company’s confirmed indebtedness to each creditor.
A company may go into liquidation when its liabilities are greater than its assets.
Secured creditor: Has a registered, secured charge against the assets of the company. Examples are a mortgage or pledge of some kind. Unsecured creditor: Does not have a secured charge. Employees: Are a special class of unsecured creditors. Employees who have made claims for wages, salaries and/or other entitlements, once …
Winding up of a company may be either: By the Company (voluntary) By the Court upon application by: – The Creditors (involuntary/compulsory) – By an application of the CBTT acting under its powers (involuntary/compulsory) Where a company has been placed into compulsory liquidation, the Court may either appoint an Official …
CIB was a member institution of the Deposit Insurance Fund. Under S44 of CBTT Act the DIC has the power to act as Liquidator for its member institutions. By an order of the High Court dated October 17, 2011, Clico Investment Bank Limited was ordered to be wound up and …
The costs associated with the liquidation are met from monetizing the company’s assets. Where the DIC is the court appointed liquidator and the funds of the company are insufficient to meet the costs associated with the liquidation the DIC may revert to the court for guidance and/or release from its …
The liquidator has to take control and then secure, realize and monetize the assets of a company prior to any distribution. The company’s size, composition, complexity and location of the assets, the length of time it takes to liquidate the assets, quality of records and the number of creditors are …
All creditors or their agents must complete a Form 55 – Proof of Debts/General Form by which they are required to prove their debt before the liquidator considers their claim. All claims should be accompanied by a sworn affidavit or signed before a Notary Public (claims outside of Trinidad and …
The liquidation process begins with the filing of the winding up petition in Court. When an application is made the Court appoints a liquidator to wind up the company. Once a company is in liquidation: The powers of the directors cease and the liquidator takes charge of the assets of …
The liquidator has a duty to all creditors, its powers under the Companies Act include but are not limited to: Taking control of and realizing a company’s assets in order to distribute the monetized assets to creditors; Bringing or defending Court proceedings in the name of the company, to recover …
