Buy right liquidators
Confirmation has been sought as to what special documentation should be insisted upon when purchasing from a Receiver or Liquidator of a Company. The proper standard of practice from a conveyancing point of view is:. Ensure that Court Order contains appointment of Liquidator. If not copy of Order of such appointment should be obtained. Confirmation as to buy right liquidators application made for Order of Sale. If so, obtain copy of such Order.
Copy of Notice of Appointment of Liquidator with his endorsed acceptance of appointment as filed in the Companies Office.
If Directors are to be joined in sale buy right liquidators of authority of Committee of Inspection sanctioning the continuance of the powers of the Directors Section 3 of the Companies Act, Satisfactory documentary buy right liquidators that the right to appoint Receiver has arisen e. Original Certificate of Charge either to be handed over or lodged in Land Registry depending on whether buy right liquidators or partial release. Other than the above the normal requirements as to documentation and searches applies.
It should be noted that where the Mortgage or Debenture affects other lands than the subject of the Purchase, it is unnecessary to require an undertaking for production, safe custody or delivery of copies.
The Liquidator takes over the function of the Directors and accordingly the execution of a Deed of Assurance by a Company in Liquidation should be effected by the affixing of the Company Seal which should be attested by the signature of the Buy right liquidators.
The Liquidator should also be joined in the Deed and execute as Liquidator to confirm the sale. The Receiver acts on behalf of the Company and normally with the benefit of a Power of Attorney contained in the Instrument under which he is appointed signs the Deed of Assurance as Attorney for the Company.
One should check that the Company in Receivership had the required power to give a Power of Attorney, and also that such Power of Attorney was contained in the Instrument under which the Receiver is appointed. If either of the elements is missing, then the Company and its Directors must execute in the normal fashion, or the Bank must convey as Mortgagee. The proper buy right liquidators of practice from a conveyancing point of buy right liquidators is: Copy of Resolution appointing Liquidator.
Copy of Resolution of Company appointing Liquidator. Certified Copy of Appointment of Receiver. A plain copy is never sufficient. Original Release and Memorial duly executed by Bank buy right liquidators stamped or cheque to cover same. Certified copy of Appointment of Receiver. Original Deed of Discharge duly executed by Bank and stamped. As to The Execution of Documents the following rules apply: Liquidator The Liquidator takes over the function of the Directors and accordingly the execution of a Deed of Assurance by a Company in Liquidation should be effected by the affixing of the Company Seal which should be attested by the signature of the Liquidator.
Receiver The Receiver acts on behalf of the Company and normally with the benefit of a Power of Attorney contained in the Instrument under which he is buy right liquidators signs the Deed of Assurance as Attorney for the Company. Back to practice notes listing.