When it becomes necessary to liquidate a company; the first step to be taken is the appointment of a?

A. a receiver
B. an auditor
C. an account
D. a liquidator

Correct Answer:

Option D – a liquidator

Explanation

In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.