A. Yes. If a creditor has grounds to present a petition for liquidation and the Court considers it necessary, a Provisional Liquidator can be appointed at the first hearing before the company knows that a petition has been lodged. If the company has lodged a caveat in advance with the Court, it is entitled to be represented at the hearing and make its objections.

A. A Liquidator owes a duty to the creditors of a company to achieve the best possible price for the assets of a company. If the former directors of a company are willing to pay a price which is better than could be obtained at an auction, the liquidator will often consider this to be the best course of action to follow.

A. Generally, no. A company has limited liability ("X Limited") which means that the liability of the company is limited to its assets. Some lenders and trade creditors will, however, ask for personal guarantees from either or both the directors and the owners (if different). This is common procedure amongst banks and finance companies and large suppliers. In that case, if the debt due is not paid out of the assets of the company, the owner/director will have to pay.

A. Yes. If a business is run as a partnership rather than as a limited company, the individual partners are liable along with the business itself to meet the claims of all the creditors. A creditor can pursue one or more of the partners for the debt and it is up to the partners to apportion the liability between themselves according to their respective shares.

A. Yes. Both a Liquidator (qv) and a Receiver (qv) have a statutory duty to send a report to the DTI on the conduct of the directors of a failed company in the period leading up to the insolvency. The DTI can raise Court proceedings to have the directors disqualified if their conduct is unfit.

A Liquidator may also commence proceedings against a director if he believes that he has obtained a benefit from the company to the prejudice of the creditors or if he believes that a director acted unreasonably in allowing a company to continue to trade when he knew that it was insolvent. The Court may order the director to make a payment to the Liquidator.