An administrator, usually denoted as a liquidator, is appointed in the context of liquefaction or winding up of a company. The liquidator takes control over the company, assembles its assets, pays debts of the company and finally distributes any surplus amongst the members according to their rights and liabilities.
The following are the general powers of a liquidator −
● Illustrating or defending any action, suit, prosecution or any legal proceedings on behalf of the company
● Carrying out the business of the company as far as it is beneficial for the company
● Paying the creditors
● Making any compromise or arrangements with the creditors
● Compromising all the calls, debts and liabilities, which may result in further debts on the company
● Selling all the mobile and immobile assets of the company by conducting public auctions or by private contracts, with power to transfer the assets to a single person or to various persons in parcels
● Performing all the acts and deeds needed for the winding up with receipts and documents using the company’s seal and name
● Drawing, accepting, making and endorsing any bill of exchange or promissory note in the name and on behalf of the company
● Raising the security of the properties and money of the company
