The Compendium

that time many things happen automatically. For example, any existing litigation or other action against the company is ‘stayed’ (they stop at that moment). Employees and directors of the company are automatically dismissed. Landlords can take no action for any arrears of rent owed.

When a winding-up Order has been made, the Official Receiver is initially appointed as Liquidator. The company’s creditors and contributories may appoint another individual, who must be a registered Insolvency Practitioner, to act as Liquidator but this is increasingly unusual in the modern day, as the Official Receiver will often take jobs through to their conclusion.

An example is the Liquidation of Carillion, a British multinational construction and facilities management services company headquartered in Wolverhampton. Its Liquidation, in 2018, was the largest ever trading Liquidation in the UK at the time.

The Official Receiver’s function, as Liquidator, is to collect in and realise the company’s assets, and to distribute the proceeds to the company’s creditors and, if there is a surplus, to the persons entitled to it. A Liquidator has wide-reaching powers. Such powers include bringing legal proceedings in the name of the company, carrying on the business of the company and paying debts.

[See ‘Liquidation’, ‘Official Receiver’, ‘OR’ and ‘Director’.]

Conditional Sale Agreement

A conditional sale agreement is similar to a hire purchase agreement. The agreement usually includes the condition that the goods don’t belong to the person or company who is in receipt of them until they have paid the final instalment due under the agreement. The lender may be able to repossess (take back) the goods if the recipient of the goods falls behind with payments.

When the final payment is made the purchaser automatically becomes the owner of the goods.

This type of agreement is very similar to retention of title. (See ‘Retention of Title’.)

[See ‘Retention of Title’.]