Company entered creditors liquidation May 2015.

Co. appointed liquidator who removed all companies records. Liquidator now demanded repayment cash.

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Company appointed liquidator May 2015.

It was the companies practice to pay wages and salaries in cash. All paye records up to date and RTI returns filed.

A cheque was drawn weekly for around £600 to cover wages and petty cash. Net Wages £477 a week.

There were good reasons for the insolvency with a major customer going bust and the sole directors health. He is now in a very poor state of health.

According to ex director nothing heard from liquidator. Two weeks ago I telephoned liquidator to ask what was happening and was advised that they would let me know. Yesterday ex director  received a letter demanding that he repay all the cash withdrawn with no credit given even for the wages.

The records including petty cash records were removed by liquidator so client has nothing other than wage records to prove how cash was spent.The indications are that the liquidator has sat on file and has only just looked at it because of my telephone call. 

Any advice as to how to proceed would be gratefully received.

Can a liquidator be removed/sacked.

Many thanks

 

 

Replies (2)

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By johngroganjga
12th Nov 2017 22:38

The creditors appoint the liquidator, and only they can remove him.

If you are instructed to act for the ex director in the issue that has arisen, I would start by asking to see the S of A and a full breakdown of the transactions the liquidator has debited to his loan account. Then take it from there.

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RLI
By lionofludesch
13th Nov 2017 07:25

The liquidator is clearly trying to build up a cash pot to pay his own fees. The wages should be evident from the RTI records. Insist on seeing the petty cash records. Challenge every debit to the director's loan. Make it hard for the liquidator.

But, as an aside, this shows the danger of dealing in cash.

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