Appointment of liquidator and auditor

(1) While adopting a resolution to liquidate a company pursuant to Section 126, the company shall appoint a liquidator.

(2) While appointing a liquidator pursuant to Sub-section (1), a practitioner licensed under the prevailing law on insolvency shall be appointed as liquidator to conduct the liquidation proceedings and fix remuneration receivable by such liquidator.

(3) The company shall give information of the appointment of a liquidator pursuant to Sub-section (2) to the Office no later than seven days after the date of such appointment.

(4) After a liquidator is appointed pursuant to Sub-section (2), the directors and officers of the company shall be relieved of their office and the liquidator shall exercise all such powers with respect to the operation and management of the company as may be exercisable by the directors and officers of the company.

(5) The service of employees of a company shall, ipso facto, be terminated after the liquidator commences the operation and management of the company pursuant to Sub –section (4).

Provided, however, that the liquidator may retain or appoint necessary employees for his/her support and assistance.

(6) The liquidator appointed pursuant to this Section shall complete the liquidation proceedings of the company within the period of time specified at the time of his/her appointment.

Provided, however, that in the case where the liquidation proceedings cannot be complete for any reason within the specified period of time, a reasonable time limit may be extended by following the same procedure as followed in his/her appointment.

(7) While appointing a liquidator pursuant to Sub-section (1), an auditor shall also be appointed subject to provisions contained in this Act.