The appointment of a company liquidator is one of the most vital steps that officially set off the process of company liquidation in Dubai, UAE. A liquidator can be an experienced individual or a company specialised in the process of winding up companies in the UAE. A company can be closed in the UAE either through court action (compulsory liquidation) or by the shareholders (voluntary liquidation).
In both cases, the appointment of a liquidator is necessary. In compulsory liquidation, the court appoints the liquidator while partners or shareholders appoint the liquidator through a General Assembly meeting during voluntary liquidation. Considering the significance of a liquidator in winding up a company in Dubai, it is important for the business owners to know the roles & duties of a company liquidator.
1. Registering his Appointment
The liquidator bears the key role in executing the entire process of company liquidation in the UAE. As the first step of action, the liquidator has to register the decision of his appointment in the commercial register. The registration in the commercial register is a legal obligation and the non-registration effectively invalidates all the actions initiated by the company liquidator in Dubai. The liquidator will register a decision of the partners or the resolution of the general assembly of the company, or the court’s decision to appoint the liquidator, along with the method and procedures to be followed during the liquidation process.
2. Take Stock of Assets & Liabilities
After his appointment, the liquidator is required to take stock of the assets and liabilities of the company. It is an arduous task but the liquidator does this by coordinating with the partners or senior leaders in the company. Moreover, such personnel are legally obligated to support the liquidator by providing him with all the necessary documents, records and books of account of the company and its assets and liabilities. The liquidator prepares a list of assets and liabilities of the company, balance sheet etc. The chairman of the board of directors or the manager of the company should sign these documents. The business owners should ensure that they are hiring a firm that provides the best company liquidation services in Dubai.
3. Keeps Record of Transactions
During the process of winding up a UAE company, the liquidators often keep a record of all the transactions pertaining to the liquidation activities and related businesses. Recording the transactions ensures that the liquidator has performed all the duties entrusted to him and has not violated his responsibilities for any reason. The liquidator should be all the necessary powers and support to complete his duties. However, he should ensure that he has carried out all the necessary steps to preserve the company’s assets and rights.
4. Manages the Collection of Debts
During the process of company liquidation in Dubai, the liquidator takes all the required steps to collect debts from third parties. He deposits the amounts received in a bank for the account of the company under liquidation. The business owners who are preparing to liquidate the company should look for consulting firms that provide reliable company liquidation services in Dubai.
5. Selling of Assets of the Company
A liquidator is required to faithfully discharge all the duties necessary to complete the process of company liquidation in Dubai. This may include representing the company before courts (if any litigation is filed against the company), settle the debts, and sell all of the moveable assets or real estate through an auction or through any method specified in the liquidation documents.
The UAE liquidator should observe vigilance while selling off the assets of the company. He should not sell off all the assets in one go unless he secures the consent of partners or the company’s general assembly. This will make sure that the company and all of its shareholders benefit from the sale.
6. Request Removal of Company Name
After performing all the necessary procedures for winding up a company in Dubai, the liquidator should present a final report to the regulating authority. The report may contain a declaration of the assets and settlement of all liabilities. After presenting the report, the liquidator is required to request the Authority remove the company from the Commercial Register. To successfully complete all the steps of the process, the management should consult with companies that ensure the best company liquidation services in Dubai, UAE.
Best Company Liquidation Services in Dubai, UAE
A liquidator is the one who is required to perform the most important functions pertaining to the process of company liquidation in Dubai, UAE. The role of a liquidator is primarily designed to ensure that the company’s assets are distributed fairly for the benefit of its creditors. However, to meet this step a liquidator has to carry out a host of duties and that is the reason why the companies are advised to hire firms that offer reliable company liquidation services in Dubai. Business owners who seek to wind up their company should look for an experienced company such as Jitendra Business Consultants (JBC), which has been providing reliable company liquidation services in Dubai as well as across the UAE. JBC acts as an official liquidator for the companies in free zones, LLCs in the mainland and offshore companies.