S.L. 234.42 Art. 111Exercise and control of liquidator’s powers.

(1) Subject to the provisions of these regulations, the liquidator of a company which is being wound up by the court shall, in the administration of the assets of the company and in the distribution thereof among its creditors, have regard to any directives that might be given by resolution of the creditors at any general meeting of the creditors as well as to directives given by the general meeting of the shareholders but in case of conflict precedence shall be given to the directives of the creditors and in case of disagreement among the creditors precedence shall be given to the directives of the holders of a registered mortgage.

(2) The liquidator may summon general meetings of the creditors or the officers and the members of the company for the purpose of ascertaining their wishes, and it shall be his duty to summon meetings at such times as the creditors or the officers or the members of the company, by resolution, either at the meeting appointing the liquidator or otherwise, may direct, or whenever requested in writing to do so by one-tenth in value of the creditors.

(3) The liquidator may apply to the court for directions in relation to any particular matter arising under the winding up.

(4) Should the liquidator, after investigating the affairs and situation of the company establish that the company is the owner of a sole ship which ship has either been sold, by a mortgagee privately or through a judicial sale, or is in the process of being sold through enforcement proceedings by a holder of a registered mortgage or a privileged creditor and that it is unlikely that there will be excess of funds for distribution to other creditors or the shareholders, the liquidator shall inform the court of the situation and provide the court with his opinion as to whether continuation of the liquidation will serve any purpose and the provisions of regulations 101 and 125 shall apply.

(5) Subject to the provisions of these regulations, the liquidator shall use his own discretion in the management of the assets of the company.

(6) If any person is aggrieved by any act or decision of the liquidator, that person may apply to the court and the court may confirm, reverse or modify the act or decision complained of, and make such order on the matter as it thinks just.

(7) A liquidator who has acted in accordance with the direction of the court or in accordance with specialist advice shall not be liable for any effects of his actions. Nor shall a liquidator be liable for any loss or expense incurred by him in carrying out his duties except where he has acted fraudulently or negligently or in breach of law or of the directions of the court.