In the case of voluntary liquidation of a business is (lie receiver is appointed by...
In the case of voluntary liquidation of a business is (lie receiver is appointed by
- A) Creditors
- B) Debtors
- C) Directors
- D) Shareholders
Correct Answer: D) Shareholders
Explanation
This question is asking who appoints a liquidator in the case of voluntary liquidation of a business.In the case of voluntary liquidation, which means the business has decided to close down voluntarily, the shareholders are the ones who appoint a liquidator. The liquidator is a person or company responsible for winding up the affairs of the business and distributing its assets to the creditors and shareholders. The liquidator's role is to ensure that the business is liquidated in an orderly and fair manner.
The options given are:
Option A: Creditors
Option B: Debtors
Option C: Directors
Option D: Shareholders (Correct)
Among these options, the correct answer is Option D: Shareholders. It is the shareholders of the business who have the authority to appoint a liquidator in the case of voluntary liquidation.
To learn more about voluntary liquidation and the roles and responsibilities of a liquidator, please read the relevant sections of the recommended textbooks.