Professional Documents
Culture Documents
6. The commission
Official Receiver : S. 419 (1) and (2) of the Company and Allied
Matter Act (CAMA) 1990 defines an official receiver to mean the
Deputy Chief Registrar of the Federal High Court (FHC) or an
officer designated for the purpose by the Chef Judge of the FHC.
Procedure -
where the liquidator is of the opinion that the company will not be
able to pay up its debt within the period stated in the solvency
declaration, he is obliged to summon a meeting of the creditors
and lay before them, a statement of the assets and liabilities of
the company 16 . Here, the winding up will be treated as if it were
a creditors' winding up 17 ;
where the winding up will continue for more than one year, the
liquidator is obliged to summon a general meeting of the
company at the end of the first year from the commencement of
the winding up and of each succeeding year, or at the first
convenient date within three months from the year or such other
date the C.A.C. shall allow; laying before the meeting, an account
of his dealings and the conduct of the winding up during the
preceding year 18 ;
when the affairs of the company have been wound up, the
liquidator shall call a general meeting by notice published in
gazette and in some newspaper printed in Nigeria and circulating
in the locality where the meeting is being called, and lay an
account - giving an explanation thereof - of the conduct of
winding up and how the property was disposed 19 ; and within 7
days, send a copy of the account to the C.A.C. 20 .
prior to the laying of the accounts before the general meeting, the
account should be audited by the auditor (s) of the company, who
are obliged to also annex a report to the effect that, in their
opinion and to the best of their information, they obtained all the
information necessary for the audit, and proper records were
maintained by the liquidator, and also that the accounts were in
accordance with the books and records and gave all the
information required by the CAMA and also gave a true and fair
view of the matters stated in such accounts 23 ;
the liquidator is to keep the books and the papers of the company
and of the liquidator for a period of 5 years from the dissolution of
the company. Thereafter, such documents may be destroyed,
except the C.A.C. directs otherwise 24 .
where the winding up will continue for more than one year, the
liquidator is to summon a general meeting of the company at the
end of the first year from the commencement of the winding up
and of each succeeding year, or at the first convenient date
within 3 months form the year or such other date as the
Commission shall allow; laying before the meeting, an account of
his dealings and the conduct of the winding up during the
preceding year 27 ;
as soon as the affairs of the company have been wound up, the
liquidator shall call a general meeting, by notice published in the
gazette and in some newspaper printed in Nigeria and circulating
in the locality where the meeting is being called, and lay an
account - giving an explanation thereof - of the conduct of the
winding up and how the property was disposed of 28 ; and within
7 days, send a copy of the account to the Commission 29 ,
provided that if a quorum is not present at the meeting, the
liquidator shall make a return that the meeting was duly
summoned and that no quorum was formed;
Liquidation is almost always heard with a dreadful expression, although it is not anything quite
so heartbreaking. Liquidation in reality is an important aspect for businesses. Liquidation
companies provide numerous services, and are most of the time hired when firms are closing, or
bankruptcy has been declared. Lesser known, is the fact that these companies can also be hired to
provide solutions for everyday inventory issues.
Liquidation can be voluntary or a necessity. Voluntary liquidation occurs when the management
of a firm agrees that they need more cash available for day to day transactions. Compulsory
liquidation has to be taken when you are forced to liquidate by law.
The most important advantage of a liquidation company is that when you hire them, they give
you cash in an upfront way. This means that the inventory has been taken off your hands, and
you acquire money to put to better use. Firms could pay off debts, or buy newer, and fast selling
stock, or else buy a fixed asset that will go on to earn them profits. After all, a bird in hand is
worth two in the bush.
When one liquidates their company, and if they hire a liquidation company to do the job for
them, the liquidation company will make sure that the inventory that you want to get rid off is
not anywhere close to the shelves that have your newest stock. According to the wishes of the
business, liquidation companies take your stock out of your general marketed area, or out of city,
province, and even out of the country.
When a liquidation firm handles liquidation, they handle the logistic costs, and get to work, as
soon as they hear from you. If the business is closing down, many liquidation companies also
offer packing and relocating help as well.
Another advantage of liquidating the company is that the liquidating agents make sure that they
advertise, and sell according to your corporate identity, and according to your advertisement
campaign that is already up and running. This way your brand image remains intact, added to
this, the bonus is that there are no additional worries for the creative department.
Sometimes liquidation companies are also used as marketers. The numerous worries that they
help with only proves that the businesses could take a new step with them, and hire them to sell
their products, services and ideas. Generally, this method is chosen when the conventional
markets do not provide you with a favourable response that you require from them, while the
liquidation companies will take your product to new markets, and find a niche for them. In
essence, they find another profitable market for you.
Bobby Dazzler is a financial consultant. You can take his advice on company liquidation and
legal steps in getting liquidation at his recommended website at http://www.beesley.co.uk.
As within anything in business, there are advantages and disadvantages to Liquidation. The reason
that Voluntary Liquidation is so popular is that its advantages far outweigh its disadvantages.
Debt is written off. Any unsecured debt is written off through the process of Liquidation, including
any tax liabilities. If you want to start again, you can without the debt holding you back.
Legal Action is stopped. Due to the nature of Voluntary Liquidation, legal action is stopped as the
company closes.
It has no bearing on the Directors. Directors in most cases are able to just get on with their lives,
as if it had not happened. If you want to go back into business, then you can.
You may have to buy the assets. If you want the assets of the company then you are going to
have to buy them, although this can sometimes be done in installments.
You will need a new company. The old company will obviously be closed down, and so you will
need a new company if you are intending to go back into business.
You can’t keep doing it. If you keep Liquidating companies in quick succession, eventually
someone will suggest that you may want to find a job instead.
Next Steps...
2. not yet payable but not one whose debt has been paid to the
4
sheriff.
3
Re William Hockley (1962) 1 WLR 555
4
Re William Hockley (1962) 1 WLR 555