Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Who is usually appointed by the court in a compulsory winding up of a company?

1. A liquidator

2. The official receiver

3. A trustee

4. A receiver

The correct answer is: The official receiver

In a compulsory winding up of a company, the court typically appoints the official receiver. The official receiver is an officer of the court who plays a vital role in the liquidation process. Their responsibilities include taking control of the company's assets, conducting investigations into the company’s affairs, and ultimately distributing the assets to creditors after the company’s debts have been settled in accordance with the legal framework governing insolvency. The official receiver may also act in tandem with a liquidator, who can be appointed subsequently to facilitate the liquidation process. However, the initial appointment during a compulsory winding up comes from the court, making the official receiver the primary figure in this context. Having the official receiver step in ensures a neutral and legally supported process, as they are equipped to handle the complexities of the company’s financial obligations during the winding-up proceedings.