ABSTRACT
The Insolvency Act 1985 changes and updates the law governing insolvency and liquidation changes, following recommendations of the Cork Report, now contained in the Insolvency Act 1986 (IA 1986). The Insolvency Act 2000 introduces the further changes and the Enterprise Act 2002. The changes intend to introduces procedures to facilitates the survival of a company in financial difficulty. It is necessary to distinguish between insolvency procedures and liquidation procedures. Not all insolvency procedures result in the company liquidation and in some circumstances a company that is not insolvent are put into liquidation. The law relating to insolvency and liquidation is complex and extensive. Liquidation is the process whereby the company's assets are collected and realised, its debts paid and the net surplus distributed in accordance with the company's articles of association. The liquidator or administrator is a person who act as nominee or he nominate another insolvency practitioner.
