To misquote JFK “Ask not what your liquidator can do for you, but what you can do for your liquidator”.
Many company directors/shareholders who place a company in liquidation seemingly have a reluctance or unwillingness to further engage with the liquidator, tasked with winding up the affairs of their failed company, after the initial first or second meetings. Often the feeling seems to be – well I have placed it in the hands of the liquidator so he can sort it out, deal with creditors, etc., and I can move on.
This approach overlooks the fact that the liquidator doesn’t (well definitely shouldn’t) have the history of the company, proper books & records, ability to deal with queries relating to e.g. book, debts, other issues without the ongoing assistance of the director. This isn’t true of all company directors/shareholders and those who are available to continue to assist the liquidator in the performance of his duties often result in better outcomes for creditors and sometimes, even for shareholders.
Much the same comment applies to creditors who, once the company is in liquidation often, expect unrealistic outcomes from the liquidator. It is a feature of our liquidator reports at Waterstone to request any information from creditors which might assist the liquidator. Certain creditors may have insights into the company that the liquidator will be unaware of information, such as email correspondence/ telephone conversations in relation to certain assets/recoveries that the liquidator may be unaware of.
The most successful liquidation outcomes are usually, the result of both creditors and directors working together with the liquidator. A liquidator is unable to wave a “magic wand” to produce a successful outcome without their assistance, and the director(s) and creditors should be aware of this.