Back To Basics - Dispute Series

1. Appointment

Pursuant to s. 159 and 162 of the Insolvency Act, 2003 (as amended) (the Act), the Court may appoint an eligible insolvency practitioner as liquidator of a company if:

1. the company is insolvent;
2. it is just and equitable that a liquidator should be appointed; or
3. that it is in the public interest for a liquidator to be appointed.

Although not the main focus of this guide, the appointment of a liquidator can also be achieved through a meeting with members of a company passing a qualifying resolution by a majority of 75%, or a higher majority if required by the memorandum or articles.

2. Standing as Creditor under the Act?

Pursuant to s. 162(2)(b) of the Act a creditor has standing to move a winding up petition. Pursuant to s.9(1) of the Act, a creditor is defined as a person who has a claim against the debtor (whether by assignment or otherwise) that is, or would be admissible in the liquidation of the debtor.