Once a liquidator is appointed, company directors lose their control over the company and can no longer act on behalf of the company.
provide the liquidator with any information about the company they ask for
hand over the company’s assets, records and paperwork
allow the liquidator to interview them
Where a director’s negligence contributed to the company’s insolvency, they may be convicted of wrongful trading (ie allowing the company to continue trading when they knew or ought to have known that the company is incapable of repaying its debts). If convicted, directors will be held personally liable for any debts incurred by the company as a result of their negligence. If their conduct was deemed unfit, they can also be disqualified as director for up to 15 years.
Where a company goes into liquidation, they may face a claim for misfeasance if a director committed acts of misfeasance or breached their duties. Misfeasance is where a director or ex-director misapplies, misappropriates, retains or becomes accountable for any money or other property of the company. If convicted, directors may be ordered to repay, restore or account to the company for any property or money, or compensate the company for breach of their fiduciary duties. They may also be disqualified from being a company director. For more information, read Misfeasance and insolvency.