For a CVL, shareholders can nominate a liquidator during the general meeting where the CVL procedure is discussed. Within 14 days of the company being placed into a CVL, directors must seek for the creditors’ approval of the nomination. If the creditors do not approve, they can put forward their own choice of liquidator, which trumps the shareholders’ nomination.
For a MVL, shareholders can pass an ordinary resolution during the general meeting to appoint the liquidator.
For compulsory liquidations, the court will appoint a civil servant (known as an ‘official receiver’) as a liquidator when making a winding up order.
Once a liquidator is appointed, they will take control of the business.
sell the company’s assets or distribute them to creditors
make an agreement or arrangement with creditors
challenge voidable transactions
bring a wrongful trading claim against directors
settle any legal disputes and/or outstanding contracts
pay liquidation costs and the final VAT bill
Note that in a CVL the liquidator acts in the interest of the creditors not the directors.