The Hindu Business Line : Official liquidators told to protect properties of cos under their custody

THE Minister for Company Affairs, Mr Prem Chand Gupta, has asked official liquidators to take all possible steps to avoid thefts in the properties of companies under their custody.

Speaking at a conference of official liquidators here on Tuesday, the Minister shared some concerns of various stakeholders on the functioning of the liquidators.

"These concerns mainly relate to delay in preparation of inventory and taking possession of assets, delay in deployment of security agencies, non-payment of bills of security agencies, theft of property of the company and sale of assets by under-valuation," he said.

He urged the liquidators to exercise due diligence to maintain the properties carefully so that it does not lose its value. "This would be in the interest of stakeholders, particularly the small investors and depositors and the labourers. Any laxity would not only harm their interests but also the credibility of the system," the Minister stated.

At present, there are more than 5,700 companies under liquidation. The Minister pointed out that the Government has already brought amendments in the Companies Act, 1956 to streamline the liquidation proceedings. Accordingly, a new institutional framework is envisaged in the form of the National Company Law Tribunal (NCLT).

The provisions relating to the winding up and liquidation of companies will be transferred from high courts to the NCLT. The tribunal may also appoint official liquidators from a panel of private professionals constituted by the Union Government.

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