Section 253: Appointment of liquidator to company in administration

253. Appointment of liquidator to company in administration (1) A liquidator may be appointed to a company in administration— (a) by the Court, on an application under section 102; or (b) by resolution of the creditors at a watershed meeting or at a meeting convened under section 275 to consider the termination of a deed of company arrangement. (2) The Court may adjourn an application under section 104 for the appointment of a liquidator of a company in administration where it is satisfied that it is in the interests of the company’s creditors for the company to continue in administration rather than be placed in liquidation. (3) The Court shall not appoint an interim liquidator of a company in administration where it is satisfied that it is in the interests of the company’s creditors for the company to continue in administration rather than have an interim liquidator appointed. (4) The appointment by the Court of a liquidator to a company in administration ends the administration. (5) In the case of the appointment by the creditors of a liquidator to a company in administration, the administrator shall be the liquidator where— (a) the creditors’ resolution does not nominate a person for appointment; (b) the person nominated is disqualified from acting as the liquidator or has not consented in writing; or (c) the person nominated is for any other reason unable or unwilling to act as liquidator. (6) (a) Where a liquidator is appointed to a company that is in administration under a deed of company arrangement, the person in control of the company immediately before the appointment of the liquidator shall as soon as practicable lodge with the Registrar of Companies— (i) a copy of the administrator’s report that accompanied the notice to creditors of the watershed meeting; and (ii) a further report updating the administrator’s report with any matters of which the officer is aware that— (A) are not referred to in the administrator’s report, or have changed since that report; and (B) affect the financial position of the company. (b) Where there is no administrator or deed administrator acting when the company is placed in liquidation, the directors of the company at the date of liquidation shall take the steps described in paragraph (a) as if they were the administrator or deed administrator. I14 – 145 [Issue 3] Insolvency Act