Question：In a creditors' voluntary liquidation, which three of the following powers can be exercised by the members' nominee as liquidator pending the appointment of a liquidator by the creditors and without the need to obtain the permission of the court?
A. Institute court proceedings.
B. Do anything necessary to protect the company's assets.
C. Purchase investment property.
D. Dispose of goods likely to diminish in value quickly.
E. Take control of the company's property.
The correct answers are:Take control of the company's property; Dispose of goods likely to diminish in value quickly; Do anything necessary to protect the company's assets.
Under the Insolvency Act 1986, the members' liquidator's powers are restricted to taking control of the company's property, disposing of goods likely to diminish in value quickly (e.g., perishable goods), and doing anything else necessary to protect the company's assets. Unless court proceedings or the purchase of property came under one of those headings, permission of the court would have to be obtained first.
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