Under a court ordered winding up, a liquidator has the power to:
I. dispose of the property of the company.
II. use any legal methods to obtain money from a debtor.
III. commence legal proceedings on behalf of the company.
IV. pay the company's shareholders before paying the creditors.

Question

Quizplus · Accepted Answer

I, II, and III are powers typically granted to a liquidator under a court-ordered winding up. The liquidator can dispose of the company's property, use legal methods to recover debts, and commence legal proceedings. However, paying shareholders before creditors contradicts the general legal principle that creditors are paid before shareholders in a liquidation process.

Under a Court Ordered Winding Up, a Liquidator Has the Power