Court-appointed liquidator
Liquidator appointed by the court to realize the company's assets in liquidation and pay the creditors according to the legal order of priority.
Definition
The judicial liquidator is the officer appointed by the court in the judgment that opens a judicial liquidation. He replaces the director in the administration of the company: the latter loses the power to dispose of the assets, and acts carried out without the liquidator are unenforceable against the proceedings.
His task is to realise the assets, that is to say to sell the company's assets under the best possible conditions, to pursue the recovery of debts, to bring liability actions where the situation justifies it, and to distribute the proceeds of the sales among the creditors in accordance with the statutory order of priority. He draws up the statement of claims with the judicial representative, prepares the distribution schedules and reports on his task to the supervising judge.
The liquidator is almost always a judicial representative entered on the national list, but may also be a bailiff in small proceedings. His remuneration is set by decree, according to the amount of the assets realised and the number of creditors. He must be impartial: he is not the adviser of the company or of the creditors, but the organ of the proceedings.
Its powers and limits
Representing the company
The liquidator represents the company in all acts of the proceedings. He may pursue an action commenced before the opening, and he alone is authorized to bring actions concerning the assets.
Selling the assets
Sales are first made by a global transfer of the company if a buyer comes forward, with the authorization of the judge. Failing that, the assets are sold separately, and the immovable property at public auction after advertising.
Informing and reporting
The liquidator sends the supervising judge a report on the company's situation and on the progress of the operations. The creditors are informed of the statements of claims and of the distributions.
What the liquidator asks of the director
The liquidator asks the director for all necessary documents: accounts, company registers, ongoing contracts, inventory of assets. The liquidator may hear the director on the situation of the company and on the facts that led it to the cessation of payments, then transmit to the examining judge the elements that reveal a management fault.
The director retains the obligation to cooperate: failing to hand over the documents or concealing elements may be sanctioned by the court, in particular by personal bankruptcy or a prohibition on managing. It is also for the liquidator to bring liability actions that make it possible to reconstitute the assets for the benefit of the creditors, when a director or a third party has contributed to the liabilities.
Frequently asked questions
What is the difference from the insolvency practitioner?
The insolvency practitioner represents the creditors and verifies their claims. The liquidator administers and realizes the assets. In a liquidation, the same professional often carries out both roles, but the roles remain distinct.
Can the director contest his actions?
He may refer the matter to the supervising judge or the court in the cases provided for by law, in particular regarding the sale of an asset or the scope of his assignment. Contests do not suspend the proceedings.
What happens at the end of his assignment?
Once the assets have been realized and the claims distributed, the liquidator applies for the closure of the liquidation. The decision is published, and the removal of the company from the trade and companies register is also made public.