Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up
199. Expenses of winding up where assets insufficient
Feedback & supportUnless expressly directed to do so by the Official Receiver, a liquidator is not liable to incur any expense in relation to the winding up of a company unless there are sufficient available assets.
Official Receiver
“Official Receiver” means the Official Receiver appointed under section 17(1) and includes a Deputy Official Receiver, a Senior Assistant Official Receiver and an Assistant Official Receiver;
The Official Receiver may, on the application of a creditor or a contributory, direct a liquidator to incur a particular expense on condition that —
creditor
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part 14, means a creditor to whom the debtor owes a debt provable in bankruptcy;
the creditor or contributory indemnifies the liquidator in respect of the recovery of the amount expended; and
if the Official Receiver so directs, the creditor or contributory gives such security to secure the amount of the indemnity as the Official Receiver thinks reasonable.
Where the Official Receiver is the liquidator, the Official Receiver is not liable to incur any expense in relation to the winding up of a company unless there are sufficient available assets.
liquidator
“liquidator” includes the Official Receiver when acting as the liquidator of a corporation;
Where the Official Receiver is the liquidator, the Official Receiver may, on the application of a creditor or a contributory, incur a particular expense on the condition that —
contributory
“contributory” has the meaning given by section 4(1) of the Companies Act 1967;
the creditor or contributory indemnifies the Official Receiver in respect of the recovery of the amount expended; and
if the Official Receiver so directs, the creditor or contributory gives such security to secure the amount of the indemnity as the Official Receiver thinks reasonable.