How To Change Liquidator

Wondering if you can change liquidator? Yes, you can, under certain conditions. Here’s a simple guide on how to do it.

Methods to Change Liquidator

1. Ask the Creditors for a Decision: Get 25% of creditors by value to agree, and you can call for a vote on removing the liquidator.
2. Apply to Court: If there’s a valid reason, the court can order the removal of a liquidator.
3. Directly Request the Liquidator: Sometimes, just asking the liquidator to step down might work.

Why Might You Want to Change Liquidator?

Reasons can include:

1. Not answering to creditors or not listening to them.
2. Not looking into the actions of company directors.
3. Selling company items for too little money.
4. Not acting in the best interest of the creditors.
5. Keeping secrets from creditors or not sharing needed info.
6. Selling company items for less than they’re worth.

However, sometimes the liquidator might have good reasons for their actions. Their main goal is to help all the creditors, not just one.

Detailed Methods to Change Liquidators

1. Ask the Creditors for a Decision to Change Liquidators:

For Voluntary Liquidation: If 25% of the creditors by value agree (excluding those related to the company), you can call for a vote.

For Compulsory Liquidation: Again, you need 25% of the creditors by value to agree. For example, if creditors are owed £100,000 in total, then creditors owed £25,000 together need to agree.

2. Apply to Court to Change Liquidator

Going to court needs a strong reason. The court won’t remove a liquidator just because creditors don’t like them. And, changing liquidators often can be costly.

3. Directly Request the Liquidator Themselves

If you’re not happy with the liquidator, sometimes just asking them to leave might work. It doesn’t hurt to ask, and sometimes they might agree.

Special Case: Provisional Liquidator Removal

Only a court can remove a temporary or provisional liquidator. This can be requested by various parties like the liquidator themselves, creditors, or even the company.

Need More Help?

For personal advice, reach out to us by email at info@exodusinsolvency.co.uk or contact us through our website. We can give you insights, but it doesn’t mean the liquidator will surely be removed. Each case is unique.