Liquidators are commonly appointed to a company where, prior to liquidation the company was a trustee of a trust. Often when the liquidators are appointed, the company has ceased to be the trustee and a replacement trustee has not been appointed.
In these circumstances, the company in liquidation is a bare trustee in relation to the trust assets and the liquidator will assume this role until a replacement trustee is appointed. Often a replacement trustee is not appointed.
Does the liquidator as bare trustee have a power to sell trust assets?
Secured creditors should not allow a liquidator to sell a secured asset without first:
A temporary Scheme was introduced in March 2009
The purpose of the temporary Scheme is to ensure that former employees of insolvent businesses receive a reasonable amount of compensation promptly, where they are owed money by their former employers.
In a White Paper published on 03 December 2009 the States proposed to introduce a permanent Scheme. The deadline for respondents to submit their views was Friday 05 February 2010