Who appoints a liquidator to an insolvent company?

A company can be wound up by resolution of its members or creditors (in a Voluntary Administration), or by the Court upon the application of one or more creditors.

• If a company is wound up by the Court the applicant must prove the company is insolvent. The Court then appoints Liquidators who are usually nominated by the creditor. The Court may also place a company into liquidation when a dispute between shareholders or members is unable to be resolved by any other means.
• If a company is wound up as a voluntary liquidation the members select the liquidators however in the case of a Creditors Voluntary Liquidation, creditors may nominate alternate liquidators (although this occurs rarely).
• Liquidators can also be appointed at the conclusions of the Voluntary Administration process by the creditors of a company. The initial appointment of the Voluntary Administrator is usually made by the directors of the company.

The liquidation process is almost identical regardless of how it is commenced.