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How do I remove a liquidator?

Last updated: February 6, 2023

The quick answer

It depends whether a) the liquidator is just the proposed liquidator and has not yet been appointed or b) they have already been appointed by creditors. 

In more detail

If the liquidator has not yet been appointed and the proposed liquidator is arranging liquidation by deemed consent (which means no meeting unless someone objects) then the creditors can request a physical or virtual meeting is held to decide who is appointed liquidator. The request for the meeting must be made by a creditor or creditors who have at least; 10% of the unsecured claims by value, 10 creditors by number or 10% of the total number of creditors.

Once the meeting is called unsecured creditors can nominate and appoint another liquidator if they carry over 50% of those creditors that actually vote. Note that creditors should make sure they complete a Proof of Debt form to vote. Those that cannot vote in person can fill in a Proxy Form to vote. Also, the proposed new insolvency practitioner who will act as liquidator must agree to act in writing. This is called consenting to act.

If the liquidator has already been appointed (you should be able to check this at Companies House) then creditors can request a meeting to remove the liquidator. At least 25% of the unsecured creditors by value (connected creditors do not count e.g., ignore director loans as creditors in the total) are needed to make this request. The current liquidator is allowed to ask for a deposit to cover costs to call the meeting.

The vote is then put to unsecured creditors at a meeting and 50% of those that vote can appoint a new liquidator.

Alternatively, an application can be made to Court to remove a liquidator.

If you would like to find out more about removing a liquidator please get in touch.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

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Author: David Kirk - ACA FABRP
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David Kirk

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