Liquidator Law and Legal Definition

A liquidator is a person who is appointed when a company is in the process of winding-up. A liquidator is responsible for collecting all the assets of a company and settling all claims against the company. A liquidator can be appointed by unsecured creditors, shareholders or on a court order. In order to settle the debts and claims of a liquidated firm, a liquidator sells off its assets. A liquidator then collects proceeds of sale to pay the creditors. Any balance amount is further distributed among the shareholders of the liquidated company.